which of the following is a capital expenditure

asked Dec 22, 2018 in Business by kateranzweiler. 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. The effect of capital expenditure decisions usually extends into the future. A. Which of the following is a capital expenditure? Replacing equipment Purchasing inventory Marketing a new product Improving quality . Which of the following is not a capital expenditure? 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 … c) Pensions. d) should be the answer. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. 60. Jul 17,2020 - Which of the following is a revenue expenditure ?a)Freight paid on purchase of plant and machineryb)Legal expenses paid to acquire a propertyc)Annual white wash of the factory buildingd)Expenses incurred to reduce working capital requirementCorrect answer is option 'C'. Repair and maintenance on buildings b. i, ii and iv. b) Subsidies. The range of current production or manufacturing activities is mainly a result of past capital expenditures. a) Defence. 56% average accuracy. Following are the key examples of capital expenditures. B. Your IP: 67.225.241.229 Q 66. Payment of an account payable b. iii Renewing signboards. Which of the following below is an example of a capital expenditure? Capital Expenditure Definition: Capital Expenditure or CapEx refers to the financial outlay made by the firm for an asset which is expected to stay in the business for a long time, so as to use the same for more than one financial year, which not only generates enduring benefits for the company but ensures the generation of revenue over the years. a. answer choices . d) Interest payments . This type of expenditure is made in order to expand the productive or competitive posture of a business. Trending Questions. Greater risk is associated with improving existing products than creating new products. Solution for Which of the following is a capital expenditure? finance; 0 Answers. Computer equipment. 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. 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. scrap value. It is an outlay expected to produce benefits within one year. a. Recently Asked Questions. iv New tyre for a van. A. c. payment of federal income taxes. Business. All grants given to state governments and Union territories are also treated as revenue expenditure, even if some of these grants may be used for the creation of capital assets. • nurfitridewi95_51731. Capital expenditure is the money spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, land etc. It is an outlay expected to produce benefits within one year. (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. Leadership. A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period. B) It is an outlay expected to produce benefits within one year. 6. Assessing risk is a trivial part of research and development. 27 times. … in order to increase the capacity or efficiency of a company for more than one accounting period. Which of the following is capital expenditure? Get your answers by asking now. a. cleaning the carpet in the front room b. replacing all burned-out light bulbs in the factory c. replacing an engine in a company car d. tune-up for a company truck ii Additional shop counter. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. Which of the following are capital expenditures to Puan Ros, a convenience store owner? It is commonly used for current asset expansion. 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Range of current production or manufacturing activities is mainly a result of past capital expenditures them, so you as... Instead of expensed on the income statement vehicles etc are a human and gives temporary!

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