Edit. E. O 1. A manufacturing company spent the following amounts on the import and installation of a machine: Freight = R s. 5 0, 0 0 0 Insurance premium = R s. 1, 0 5 0 Replacement of a part damaged in transit not covered under insurance policy = R s. 6, 0 0 0 Based on the above data, capital expenditure … 3 months ago. b. Sometimes the expenditure even not resulting in the increase of profit earning capacity but acquires an asset comparatively permanent in nature will also be a capital expenditure. Cloudflare Ray ID: 609e759c0c2c2b1a Capital expenditures are a long-term investment, meaning the … Describe what you believe the elements of unit costs would be for that business. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. 6. A. investment in a new factory only. Which of the following is a capital expenditure? R&D activities is correct? Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Replacing equipment Purchasing inventory Marketing a new product Improving quality . Which of the following is considered a capital expenditure? Installation Of Elevators To Replace Escalators O 4. Q 66. All the amounts paid upto the point an asset is ready for use is included in cost of that asset. Normal repairs and maintenance. 5. a. addition. The following are illustrative examples of capital expenditures. Land Land is a special type of capital expenditure as its value doesn't typically deprecate because it generally doesn't go down in value. Payment of an account payable b. C. Monthly fuel costs for a truck owned by the company. The following capital expenditures are typically included in a firm's capital budget: A. investments in information technology software. See below for the correct answer. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Sales Tax Paid In Conjunction With The Purchase Of New Machinery 3. which of the following is not a capital expenditure? Repair of plant and machinery B. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? Your IP: 176.9.160.118 Capital expenditures tend to be quite substantial in certain industries, such as utilities and manufacturing. Advertising expenditures to introduce a new product line is not a capital expenditure. Performance & security by Cloudflare, Please complete the security check to access. e. The cost of installing a piece of equipment. The addition of a building wing B. 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. A. A complete overhaul of an air-conditioning system. The addition of a building wing. Capital expenditure should not be confused with operating expenses (OpEx). Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N) paid property taxes of $75,000 for the first year the new building is occupied. 5. Replacement of an old motor with a new one in a piece of equipment c. A tune-up of a company vehicle d. Te cost of installing a piece of equipment e. Te addition of a building wing a - repairs. Which of the following is a capital expenditure? An example of a growth expense is an addition to a building or purchase of another business to add to the current business. c. A tune-up of a company vehicle. A complete overhaul of an air-conditioning system. Related questions. Save. Which of the following is not a capital expenditure? B. investments in research and development. 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 … salvage value is to the same as. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Which of the following is not a capital expenditure: a. Fire insurance premium on a new building. Which of the following is not a capital expenditure? 100% correct and accurate. Air ticket paid for the purchase of machinery. A. Risk increases as the time between the R&D activity and the cash flows from the project increases. D) An amount paid to acquire a patent with a … Repairs that maintain an asset in operating condition b. 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. Cloudflare Ray ID: 609e759b99d4c29f Advertising expenditures to introduce a new product line is not a capital expenditure. Repair: expenditure for keeping the property in an ordinarily efficient operating condition. Question: Which Of The Following Costs Is Normally Not A Capital Expenditure? a. scrap value. Cost of dismantling a building in case a … answer choices . d-none. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. • Architect's fees for a new building. Favorite Answer. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … For; 1 - d none of these are consider capital expenditures. Moreover, any expenditure which is incurred for the purpose of increasing profit earning capacity or reducing cost of production is a capital expenditure. Which of the following below is an example of a capital expenditure? (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. Which of the following is a capital expenditure? Edit. C) Installation of elevators to replace escalators. An addition c. A betterment d. O 2. Testing for use c. Uninsured theft d. Sale tax e. None… Get more help from Chegg. 29. Which of the following capital expenditures may not appear in a firm's capital budget? 0. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. 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