State whether the following statements are true or false
- Capital expenditure is money spent on purchase of fixed assets for immediate resale.
- Fixtures and fittings are intangible assets.
- Copyrights belong to intangible assets.
- Legal expenses incurred in connection with the purchase of property are revenue expenditures.
- Interest paid on a loan to purchase a fixed asset is also a capital expenditure.
- The direct benefit of revenue expenditure is usually exhausted in the accounting period itself.
- The cost of raw materials used in the manufacture of goods intended for resale is capital expenditure.
- All expenses incurred for upkeep of fixed assets are capital expenditure.
- Capital expenditure may result in enhancement of the value of an existing asset.
- Capital expenditure is transferred to trading and profit and loss account.
- The money spent on repairs of a second hand machine is capital expenditure.
- Prepaid expense is a capital expenditure.
- Preliminary expenses incurred on the formation of a limited company are deferred revenue expenditure.
- Any contributions to the capital of the business are capital receipts.
- Sale of inventories is a capital receipt.