ASSERTION: Painting and lettering the new office car is Capital expenditure. REASONING: A replacement engine fitted to the delivery van is Revenue expenditure.

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KollegeApply · Accepted Answer

A is true, and R is not the correct explanation for A. Explanation: Painting and lettering a newly acquired office car are capital costs because they prepare the asset for use; fitting a replacement engine is maintenance (revenue). R is true, but does not explain A.

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