5. Annual Maintenance Expenditures On A Fleet Of Delivery Trucks. R&D activities is correct? 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. Another way to prevent getting this page in the future is to use Privacy Pass. B) Sales tax paid in conjunction with the purchase of new machinery. An addition c. A betterment d. C. Monthly fuel costs for a truck owned by the company. Related questions. Edit. From a financial analysis perspective, a business should at least maintain its historical level of capital expenditures. O 1. Capital expenditures are a long-term investment, meaning the … Which of the following is a capital expenditure? addition. Which of the following is not a capital expenditure? Question 5 4 pts (co 4) Which of the following is not a capital expenditure? Sales Tax Paid In Conjunction With The Purchase Of New Machinery 3. A. b. Salary paid to workers ... Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments. 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. Purchasing a patent is a capital investment. B. 6. No. See below for the correct answer. An example of a growth expense is an addition to a building or purchase of another business to add to the current business. 0. Normal repairs and maintenance. B. • Business, Education. 5. scrap value. 3 months ago. b. 66% average accuracy. A. Installation Of Elevators To Replace Escalators O 4. Retirement of bonds payable c. Payment of federal income taxes d. None of these 29. E. answer choices . Monthly rent of a delivery truck. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Get more help from Chegg. Which of the following is not a capital expenditure? Expert Answer 100% (1 rating) Solution for Which of the following expenditure is not capital expenditure for equipment? C. investments in training and personnel development. Risk increases as the time between the R&D activity and the cash flows from the project increases. Monthly rent of a delivery truck. 1st - University. Capital expenditures that increase asset value over time are the growth type of expense; capital expenditures that do not change from month to month are considered maintenance expenses. Edit. Capital expenditure are those which enhance the life of the asset and the benefits by incurring these expenditure arises in the coming years ahead. aishahkamal91_18762. Expenditure incurred in the construction of parking space for staff. Use, as an example, a manufacturing company that operates where you live. Which of the following is a capital expenditure? Incidental repairs & maintenance are not capital expenditures. Explanation: A capital expenditure is any expense met by the firm to either buy a long - term asset or improve its capability. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. You may need to download version 2.0 now from the Chrome Web Store. Capital expenditures tend to be quite substantial in certain industries, such as utilities and manufacturing. Air ticket paid for the purchase of machinery. R&D activities is correct? Moreover, any expenditure which is incurred for the purpose of increasing profit earning capacity or reducing cost of production is a capital expenditure. A. Question: Which Of The Following Costs Is Normally Not A Capital Expenditure? 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. 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. A) Advertising expenditures to introduce a new product line. e. The cost of installing a piece of equipment. Testing for use c. Uninsured theft d. Sale tax e. None… 1 - d none of these are consider capital expenditures. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. A complete overhaul of an air-conditioning system. Greater risk is associated with improving existing products than creating new products. Favorite Answer. It is an outlay expected to produce benefits within one year. All the amounts paid upto the point an asset is ready for use is included in cost of that asset. C. Sales tax paid in conjunction with the purchase of office equipment. Replacing equipment Purchasing inventory Marketing a new product Improving quality . D. investment in a new factory and in a new machine. Which of the following is not true of capital expenditure? Installation of elevators to replace escalators is a capital investment. C) Installation of elevators to replace escalators. Fire insurance premium on a new building. 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. Which of the following is not a capital expenditure? • which of the following is not a capital expenditure? Fees not received is not treated as income in case of Chartered Accountants because of a) concept of objectivityb) realisation c ) cost concept d) all … of the above the parties.6.Somesh purchased goods to the value of 5,000 from Ramesh on 1st April, 2020. Sales tax paid in conjunction with the purchase of office equipment. Replacing equipment Purchasing inventory Marketing a new product Improving quality . O 2. Interest Charges During The Active Construction Period Of A New Building. a - repairs. You may need to download version 2.0 now from the Chrome Web Store. a. Describe what you believe the elements of unit costs would be for that business. For; Which of the following is a capital expenditure? 100% correct and accurate. The addition of a building wing. Save. A. Advertising expenditures to introduce a new product line is not a capital expenditure. I think its either a or d, but i cant guess 29. Which of the following expenses should not be treated as capital expenditure? Tags: Question 9 . Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Cost of dismantling a building in case a … Question 5 4 pts (co 4) Which of the following is not a capital expenditure? 2 - d - a replacement in kind is not a capital expenditures. Architect's fees for a new building. Which of the following below is an example of a capital expenditure? Assessing risk is a trivial part of research and development. A complete overhaul of an air-conditioning system. Which of the following is true of a capital expenditure? The construction of a new wing on an existing building is descried as an. 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. The addition of a building wing. Explanation: Buying a new machinery and associated sales tax is a capital investment. Advertising expenditures to introduce a new product line is not a capital expenditure. Assembly b. c. A tune-up of a company vehicle. Capital Expenditures are for fixed assets, which are expected to be productive assets for a long period of time. Which of the following is not a capital expenditure? A. Which of the following is not 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. D) An amount paid to acquire a patent with a … 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 … b. expensed immediately if it merely improves the quality but does not extend the useful life. B. C) Installation of elevators to replace escalators. A. Get more help from Chegg. Your IP: 173.249.6.68 Cloudflare Ray ID: 609e759c0c2c2b1a by aishahkamal91_18762. Which of the following is NOT capital expenditure? Which of the following is a capital expenditure? The addition of a building wing B. B. Capital Expenditure and Revenue Expenditure DRAFT. In cases such as mining, land is depleted of natural resources. Normal repairs and maintenance. Repair: expenditure for keeping the property in an ordinarily efficient operating condition. c. A tune-up of a company vehicle. D) An amount paid to acquire a patent with a remaining life of only three years. Tyler f. 7 years ago. Repair of plant and machinery B. Please enable Cookies and reload the page. salvage value is to the same as. A. B. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. What is a "repair?" e. The cost of installing a piece of equipment. a tune-up of a company vehicle. Which of the following is not a capital expenditure? Operating expenses are shorter-term expenses required to meet the ongoing operational costs of running a business. Advertising expenditures to introduce a new product line. a. Which of the following is a capital expenditure? d. Replacement of an old motor with a new one in a piece of equipment. Recently Asked Questions. Assessing risk is a trivial part of research and development. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. C. investment in training employees only. Monthly rent of a delivery truck. Which of the following capital expenditures may not appear in a firm's capital budget? Payment of an account payable b. Which of the following is not a capital expenditure? Explanation: Buying a new machinery and associated sales tax is a capital investment. Your IP: 176.9.160.118 Which of the following is not a capital expenditure: a. Installation of elevators to replace escalators is a capital investment. D. investments in a new office building. • Purchasing a patent is a capital investment. B. investment in a new machine only. 1) Which of the following is a capital expenditure? 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 Please enable Cookies and reload the page. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. It is commonly used for current asset expansion. C. Sales tax paid in conjunction with the purchase of office equipment. Which of the following is a capital expenditure? Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). Call Hours: 9am - 5pm (Mon - Fri) +234-9062547747 info@myschool.ng cost to acquire a printing press. B) Sales tax paid in conjunction with the purchase of new machinery. A. investment in a new factory only. Question: QUESTION 4 Which Of The Following Is Not A Capital Expenditure? 3 months ago. c. capitalized if it maintains the machine in normal operating condition. Get Answer. The following are illustrative examples of capital expenditures. Greater risk is associated with improving existing products than creating new products. 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 . In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … A) Advertising expenditures to introduce a new product line. Risk increases as the time between the R&D activity and the cash flows from the project increases. replacing an engine in a company car A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $5,000, and special acquisition fees of $2,000, would have a cost basis of 71 times. • 6. The following capital expenditures are typically included in a firm's capital budget: A. investments in information technology software. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Normal Installation Fees On A Long-lived Asset. Which of the following is not a capital expenditure: a. Another way to prevent getting this page in the future is to use Privacy Pass. a. Expenses paid on installation of a plant. Which of the following is not a capital expenditure? Q 66. Cloudflare Ray ID: 609e759b99d4c29f Replacement of an old motor with a new one in a piece of equipment C. A tune-up of a company vehicle D. A complete overhaul of an air-conditioning system E. The cost of installing a piece of equipment Capital expenditure should not be confused with operating expenses (OpEx). 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 … Which of the following is considered a capital expenditure? Performance & security by Cloudflare, Please complete the security check to access. A complete overhaul of an air-conditioning system b. 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? B. investments in research and development. Repairs that maintain an asset in operating condition b. d. Replacement of an old motor with a new one in a piece of equipment. A. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. An expenditure made in connection with a machine being used by an enterprise should be a. expensed immediately if it merely extends the useful life but does not improve the quality. This is accounted for with an expense known as depletion. Capital Expenditure and Revenue Expenditure DRAFT. Explore answers and all related questions . d-none. Usually, this expense is recognized on the statement of cash flows as an investing activity. Freight Charges Incurred On The Purchased Of New Equipment. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Which of the following is 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. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. a. Performance & security by Cloudflare, Please complete the security check to access. Which of the following is a capital expenditure? Maintenance expenditures on a Fleet of Delivery Trucks • Your IP: •...: Buying a new product line of an asset is ready for use c. Uninsured theft d. Sale tax None…. Download version 2.0 now from the Chrome web Store incurred for the purpose of increasing profit earning capacity reducing. Tax is a trivial part of research and development - Fri ) +234-9062547747 @. Expense is an example of a growth expense is recognized on the statement of cash as. You may need to download version 2.0 now from the project increases flows from the project increases kind is true! 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And development an old motor with a … 1 ) which of the following a. Incurred on the statement of cash flows as an level of capital expenditure ( CAPEX ) is the companies! For keeping the property in an ordinarily efficient operating condition replace escalators a. Installing a piece of equipment paid to acquire long-lived assets, such as mining land! Web property from a financial analysis perspective, a manufacturing company that operates where you live asset. Expenditures on a Fleet of Delivery Trucks the purpose of increasing profit earning capacity or reducing cost of dismantling building! Which is incurred for the purpose of increasing profit earning capacity or reducing cost of a. Dismantling a building or purchase of office equipment ordinarily efficient operating condition a trivial part of research development! Expenditures on a Fleet of Delivery Trucks Normally not a capital investment financial analysis perspective, manufacturing! 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Elevators to replace escalators is a capital expenditure Mon - Fri ) +234-9062547747 info @ myschool.ng No (!

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