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Use the following information to answer the given question \(\begin{array}{c|c} & Le\\ \hline \text{Construction and...

Accounts - Principles of Accounts
WAEC 2012

Use the following information to answer the given question
\(\begin{array}{c|c} & Le\\ \hline \text{Construction and hospital wards} & 300,000\\ \text{purchase of hospital beds} & 40,000 \\ \text{salaries and wages}& 80,000\\ \text{Purchase of drugs} & 55,000\\ \text{purchases of x-ray machine} & 150,000\end{array}\)
Capital expenditure for the year was

  • A. Le 545,000
  • B. Le 490,000
  • C. Le 450,000
  • D. Le 300,000
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Correct Answer: Option B
Explanation

capital expenditures; money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

300,000 + 40,000 + 150,000 = 490,000


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