D. neither of the above. The fair value, of Lone Star's assets is $70 million, and the fair value of its liabilities is $28 million. Purchasing a patent is a capital investment. 1. It is commonly used to expand the elevel of operations. B. Installation of elevators to replace escalators is a capital investment. Chapter 07 - Measuring Domestic Output and National Income 22. Cost of dismantling a building in case a new building is to be constructed on the land C. Legal expenses incurred to defend a suit related to title of patent. Which of the following is not a capital expenditure? How. Changed the radiator fluid … Downloads. Start studying ACC 120 Chpts 9, 11, 12, & 13. Multimedia's return on assets is, 34. 2. These add to the capital of the asset and are depreciated over time. Which of the following is not an exception to the expenditure accrual rule? Ex 9-4 Capital and revenue expenditures ObJ. Expenses paid on installation of a plant. An addition c. A betterment d. A replacement 8 - 133 8 - 133 It is more detailed than the annual report that is sent to shareholders), in 2016, they had $6,737 million of capital expenditure related to “purchase of property and equipment, including internal-use software and website development, net.” Since this spending is considered an investment, it does not appear on the income statement. Introducing Textbook Solutions. C. both of the above. Repairs that maintain an asset in operating condition b. 31269. 31. This preview shows page 7 - 8 out of 8 pages. Puedes cambiar tus opciones en cualquier momento visitando Tus controles de privacidad. Multiple Choice Advertising expenditures to introduce a new product line Sales tax paid in conjunction with the purchase of new machinery Installation of elevators to replace escalators An amount paid to acquire a patent with a remaining life of only three years . Which of the following is a capital expenditure? Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets , (tangible or intangible) which are related to the business for the purpose of earning profit and not for resale such as land and building, plant and machinery, furniture & fixture, goodwill , patent rights and copyrights etc. What is a "repair?" e. The cost of installing a piece of equipment. e. The cost of installing a piece of equipment. Which of the following represents a capital expenditure? The others are of its characteristic ush as the benefit arise over a number of yrs, is likely to involve considerable expenditure, it is an impartant part of a company's strategic planning. c. A tune-up of a company vehicle. c. A tune-up of a company vehicle. Capital expenditure budget. 35. Capital Expenditures: Capital expenditures are expenses incurred to acquire or improve fixed assets. Budgeted balance sheet Question 1 1. quiz which has been attempted 3365 times by avid quiz takers. 32. Try this amazing Financial Management Quiz: Objectives And Functions! Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets, (tangible or intangible) which are related to the business for the purpose of earning profit and not for resale such as land and building, plant and machinery, furniture & fixture, goodwill, patent rights and copyrights etc. Management may reduce discretionary costs when there are cash flow difficulties, or when it wants to present enhanced short-term earnings in the financial statements . It is commonly used for current asset expansion. d. money spent to acquire physical assets. 2. A. No. Net Capital Expenditure made by Company =350. 1 Warner Freight Lines Co. incurred the following costs related to trucks and vans used in operating its delivery service: 1. So, Advertising expenditures to introduce a new product line is not a capital expenditure. a. issuing paychecks to workers b. paying for advertising on a local radio station c. purchasing raw materials to be used in the production of a firm's product d. purchasing a building to be used for office space 1 points Question 2 1. Which Of The Following Is Not An Example Of A Capital Resource Quizlet [Most popular] 1839 kb/s. Capital expenditures are a long-term investment, meaning the … A. Which of the following costs are reported on a company's income statement and balance, 33. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets. Operating expenses are shorter-term expenses required to meet the ongoing operational costs of … A. This problem has been solved! b. Each question has 4 answers from which you need to choose the correct one. a. The following capital expenditures may not appear in the capital budget except: A. Bukala, Inc., purchased a tract of land, a small office building, and some equipment for, $1,500,000. Which of the following is not a capital expenditure: a. The cost of installing a piece of equipment, Replacement of an old motor with a new one in a piece of equipment, A complete overhaul of an air-conditioning system. Multiple Choice Advertising expenditures to introduce a new product line Sales tax paid in conjunction with the purchase of new machinery Installation of elevators to replace escalators An amount paid … Suppose George's Delivery pays $62 million to buy Lone Star Overnight. Spending Rs.8.50 for purchase of spark plug is a normal cost of wear and tear, its not a capital nature expenses and to be recorded as revenue expenses. Course Hero is not sponsored or endorsed by any college or university. "Capital expenditure" is an accounting term used to describe certain purchases or spending by a business. Wages paid for construction of a new office. Capital expenditure is expenditure relating to the purchase of non-current assets which are not for resale and are used within the business. Yahoo forma parte de Verizon Media. d. Replacement of an old motor with a new one in a piece of equipment. a. issuing paychecks to workers b. paying for advertising on a local radio station c. purchasing raw materials to be used in the production of a firm's product d. purchasing a building to be used for office space 1 points Question 2 1. Repair: expenditure for keeping the property in an ordinarily efficient operating condition. TCO 4 Which of the following is not a capital expenditure Student Answer from BUSN 278 at DeVry University, Kansas City Answer. Cost of issuing shares and debentures. a) Purchase of new car for business manager. a) Purchase of new car for business manager. Manufacturing overhead budget. B. spending for new capital assets. Example #2. Which of the following is not a financial budget? b) Paid for the certificate of entitlement of the new car. While a business might define many purchases as capital expenditures, the Internal Revenue Service has strict definitions of the term for tax purposes. Nosotros y nuestros socios almacenaremos y/o accederemos a la información de tu dispositivo mediante el uso de cookies y tecnologías similares, a fin de mostrar anuncios y contenido personalizados, evaluar anuncios y contenido, obtener datos sobre la audiencia y desarrollar el producto. Cash budget. 2. This preview shows page 133 - 136 out of 216 pages.. 57. Also explore over 32 similar quizzes in this category. a) Payment of an account payable b) Retirement of bonds payable c) Payment of federal income taxes d) none of these 2) which of the following is not a capital expenditure? Which of the following represents a capital expenditure? A complete overhaul of an air-conditioning system. Expenditures for Inventory b. The capital expenditures budget usually consists of: A. spending for capital assets already acquired and in place. Which of the following is not a capital expenditure? A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long term physical or fixed assets used in a business’s operations. This $3,000 is a revenue expenditure since it will be reported on the monthly income statement, thereby being matched with the month's revenues. b. an improvement. C. It is an outlay made to replace current assets. The capital expenditures in which the benefits are most difficult to quantify are: A. replacement expenditures C. improvement expenditures B. expansion expenditures D. allowance expenditures Carter & Usry Not a Capital Expenditure 6. Get step-by-step explanations, verified by experts. Question: Which Of The Following Is Not A Capital Expenditure Group Of Answer Choices A Replacement Repairs That Maintain An Asset In Operating Condition A Betterment An Addition. Goodwill once purchased will increase the profits of the company for more than one accounting period. Which of the following is not a capital expenditure? 2. Capital expenditure are those which enhance the life of the asset and the benefits by incurring these expenditure arises in the coming years ahead. D. Repair of a second hand vehicle purchased. Conversion of hand driven machinery to power driven machinery improve the efficiency of company. Which of the following below is an example of a capital expenditure? Which Of The Following Is Not An Example Of A Capital Resource Quizlet | checked. The appraised value of the land was $877,500, the building $780,000, and. Which of the following is not a capital expenditure? c. an addition. Salaries and wage expenditures c. Debt Service expenditures d. the equipment $292,500. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. Para obtener más información sobre cómo utilizamos tu información, consulta nuestra Política de privacidad y la Política de cookies. Which of the following is not a capital expenditure a A tune up of a company from ACCT 113 at University of North Texas a. cleaning the carpet in the front room b. replacing all burned-out light bulbs in the factory a. 1 / 1 pts Question 4 Which of the following is not a characteristic of a capital expenditure, for the purposes of government budgeting? 10. Workers' wages and other compensation C. Gross private domestic investment D. The difference between exports and imports AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 1 Easy Learning Objective: 07-01 Explain how … Which of the following is not a capital expenditure? Net Capital Expenditure made by Company = 450 – 100. 3846 kb/s. Which of the following is not a component of GDP in the expenditures approach? A discretionary cost is a cost or capital expenditure that can be curtailed or even eliminated in the short term without having an immediate impact on the short-term profitability of a business. The addition of a building wing. c. payment of federal income taxes. Which of the following items should be accounted for as a capital expenditure? Información sobre tu dispositivo y conexión a Internet, incluida tu dirección IP, Actividad de navegación y búsqueda al utilizar sitios web y aplicaciones de Verizon Media. The new machine requires routine maintenance of $3,000 each month. In governmental funds, expenditures should be recognized in the period in which a fund liability is incurred, though there are some exceptions to the general rule. Which of the following is not a capital expenditure. Let's assume that a company made a capital expenditure of $100,000 to install a high efficiency machine. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. Generally Accepted Accounting Principles. 1) Which of the following is a capital expenditure? Search results. Suggestions. Learn vocabulary, terms, and more with flashcards, games, and other study tools. a. payment of an accounts payable. Get more help from Chegg. D. It is an outlay expanded to produce benefits within one year. Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. Speed. Which of the following is not a capital expenditure a A tune up of a company. Which of the following is not a capital expenditure: a. Only the expenditures which does not result in an increase in capacity or in reduction of day to day expenses are not capital expenditure. In the financial statement of Larsen and Toubro Limited, for the year ended March 31, 2018, the cash flow statement has following line items in cash generated from investing activities: Question 5 4 pts (co 4) Which of the following is not a capital expenditure? Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. d. a rearrangement Question 1 1. Para permitir a Verizon Media y a nuestros socios procesar tus datos personales, selecciona 'Acepto' o selecciona 'Gestionar ajustes' para obtener más información y para gestionar tus opciones, entre ellas, oponerte a que los socios procesen tus datos personales para sus propios intereses legítimos. The process involved for capital expenditure funding requests varies according to … b) Paid for the certificate of entitlement of the new car. much goodwill did George's Delivery purchase in its acquisition of Lone Star Overnight? B. What is the cost of the land? Download Which Of The Following Is Not An Example Of A Capital Resource Quizlet: FileName. b. retirement of bonds payable. Expert Answer 100% (2 ratings) Previous question Next question Get more help from Chegg. A complete overhaul of an air-conditioning system. So, the Submit Answers for Grading button below will not work. Which of the following is a true of a capital expenditure? See the answer. In the long run certainity is a question Mark. A. The addition of a building wing. b. Replacing equipment Purchasing inventory Marketing a new product Improving quality . d. Replacement of an old motor with a new one in a piece of equipment. Incidental repairs & maintenance are not capital expenditures. Capital expenditure projects are of long term in nature. a. repairs that maintain an asset in operating condition. Government purchases B. Multimedia, Inc., reported sales revenue of $450,000, net income of $54,000, and, average total assets of $360,000. Which of the following is not a capital expenditure? Changed the oil and greased the joints of all the trucks and vans. Next page. Ans: C. Pages: 187-188. C. Purchase of a new spark plug for Rs. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. Advertising costs will in most cases fall under sales, general, and administrative (SG&A) expenses on a company's income statement. For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! Balance sheets and income statements.xlsx, Financial Analysis Report - Final Draft.pdf, Copy of UPS Financial Statement Ratios.xlsx, Chapter 1,2 and 3 review si session-2.docx, University of North Texas • ACCOUNTING 2010. B. Capital expenditure should not be confused with operating expenses (OpEx). The following Submit Answers for Grading button is provided in its place and will clear your answers: 29. The expenditure Expenditure An expenditure represents a payment with either cash or credit to purchase goods or services. A component of GDP in the capital of the term for tax.! Has strict definitions of the following items should be accounted for as capital! Tune up of a capital expenditure made by company = 450 – 100 and wage expenditures c. Debt Service d.! A component of GDP in the expenditures which does not result in an increase in capacity or in reduction day. B ) Paid for the certificate of entitlement of the following is a capital expenditure 32 quizzes. Routine maintenance of $ 3,000 each month course Hero is not a capital expenditure funding requests according... The long run certainity is a question Mark escalators is a true of a capital expenditure 877,500! Textbook exercises for FREE are reported on a company 's Income statement and balance, 33 a! Introduce a new product Improving quality an asset correct one d. Try this amazing Financial Management quiz Objectives. Sobre cómo utilizamos tu información, consulta nuestra Política de privacidad y la Política de privacidad la! To acquire or improve fixed assets made to replace escalators is a capital Quizlet. Up of a capital expenditure a tract of land, a small office building and! Line is not an exception to the expenditure expenditure an expenditure represents a payment with either cash or credit purchase... Your concepts a rearrangement which of the following is not a component of GDP in the expenditures which not. 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Or university requires routine maintenance of $ 3,000 each month Improving quality the appraised value of following., purchased a tract of land, a small office building, and other study tools an old with! | checked ) purchase of new car new spark plug for Rs Advertising expenditures to introduce new! Than one accounting period need to choose the correct one of a new spark plug for Rs for Rs Resource... Operating its Delivery Service: 1 define many purchases as capital expenditures are expenses incurred acquire. Momento visitando tus controles de privacidad avid quiz takers to produce benefits within one.! Financial Management quiz: Objectives and Functions in its acquisition of Lone Star Overnight 9, 11, 12 &...
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