Home › CMA Foundation › costaccounting › Capital and Revenue Transactions › A business that purchases goods for resale would…
A business that purchases goods for resale would record this as:
ADeferred revenue expenditure
BCapital expenditure
CRevenue expenditure
DCapital receipt
Answer & Solution
Correct answer: C. Revenue expenditure
1. Per OCR example: "purchase of goods for resale" listed as revenue expenditure.
2. Recurring, single accounting period benefit.
3. Charges to P&L on sale (via cost of goods sold).
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.3.1 (page 20)_