A. c) Bought car cushion for the new car. A. 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.Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building). Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. ii, iii and iv. Mcq Added by: admin. Which of the following is NOT true of capital expenditures? D. It is an outlay expanded to produce benefits within one year. 60. Aastharai13 Aastharai13 Answer: Explanation: 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. Which of the following is capital expenditure? Management. 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. B) It is an outlay expected to produce benefits within one year. Accounting Mcqs. iii Renewing signboards. Capital expenditures usually take two forms: maintenance expenditures and expansion expenditures.Due to their substantial initial costs, irreversibility, and long-term effects, capital expenditure decisions are very critical to an organization. Relevance. a. 7 months ago. Edit. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Get more help from Chegg. Which of the following is a capital expenditure? A capital expenditure is the use of funds or assumption of a liability in order to obtain or upgrade physical assets. 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. The following capital expenditures may not appear in the capital budget except: A. Solution for Which one of the following is NOT true of capital expenditure? Solution for Which of the following is a capital expenditure? An addition c. A betterment d. Join. B. i and ii. They are important because of the following reasons: 1. 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. 6. It is commonly used for current asset expansion. Companies should weigh all possible options before committing available resources to projects that take significant amounts of funds and extended time. 1st - University. The expenditure Expenditure An expenditure represents a payment with either cash or … The intent is for these assets to be used for productive purposes for at least one year. Which of the following is a capital expenditure? Which of the following is true of a capital expenditures budget? Replacement of an old motor with a new one in a piece of equipment C. THe cost of installing a piece of equipment D. A tune-up of a company vehicle E. The addition of a building wing 2. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. The replacement of a major component of a building c. An addition to an existing building d. Rearrangement costs that are identifiable, material, and are expected to provide discernable future benefits 61. 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. addition. These physical assets may include equipment, industrial buildings or any kind of property under the company`s jurisdiction. ii Additional shop counter. It will increase the capital of the business It will decrease the capital of the… 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. 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. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the … Capital Expenditure and Revenue Expenditure DRAFT. a) Purchase of new car for business manager. iv New tire for a van. a. 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'. Which of the following is true of a capital expenditure? a) Defence. iii Renewing signboards. 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 … Save. posted by John Spacey, October 17, 2017 updated on June 23, 2020. salvage value is to the same as. Or, as Investopedia so eloquently put it, capital expenditures represent the “funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.” More specifically, CapEx is generally used to … b) Paid for the certificate of entitlement of the new car. Normal repairs and maintenance. Please enable Cookies and reload the page. Each question has 4 answers from which you need to choose the correct one. Economics. Anonymous. Trending Questions. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. B. This type of expenditure is made in order to expand the productive or competitive posture of a business. Expert Answer 100% (2 ratings) Previous question Next question Get more help from Chegg. Which of the following is true of a capital expenditure? b. retirement of bonds payable. Explore answers and all related questions . B. 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. Solution for Which of the following is a capital expenditure? 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. B. A. Business. answer choices . Answer Save. Examples of capital expenditures are funds paid out … cost to acquire a printing press. Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? a. 1. C. Sales tax paid in conjunction with the purchase of office equipment. 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. Monthly rent of a delivery truck. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. Which of the following are capital expenditures to Puan Ros, a convenience store owner? Which of the following are capital expenditures to Puan Ros? menu. Monthly rent of a delivery truck. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Normal repairs and maintenance. Which of the following is true of a capital expenditure? Greater risk is associated with improving existing products than creating new products. a) Purchase of new car for business manager. Please enable Cookies and reload the page. Answer. Repair and maintenance on buildings b. Capital Expenditure and Revenue Expenditure DRAFT. • Repair of plant and machinery B. C) It is commonly used for current asset expansion. Which of the following is not a capital expenditure A. 6. Leadership. It is true what they say: you need to spend money to make money, and capital expenditures are no exception. C. Sales tax paid in conjunction with the purchase of office equipment. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. 1) 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. i and ii. 7 months ago. Performance & security by Cloudflare, Please complete the security check to access. R&D activities is correct? a)wages b) wages paid for building construction c) repair expenses of building d) advertisement expenses 2 See answers sanjaypandey056 sanjaypandey056 Answer: I think . Products. This can be viewed as an investment in a business that isn't immediately expensed but … iv New tyre for a van. Which of the following is true of a capital expenditure? You may need to download version 2.0 now from the Chrome Web Store. 100% correct and accurate. Having said that, they are nothing, if not necessary. Which of the following is a capital expenditure? 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. nurfitridewi95_51731. TCO 4 Which of the following is not a capital expenditure Student Answer from BUSN 278 at DeVry University, Kansas City Practice following Capital and Revenue Expenditure Multiple choice questions. Long-term Effects. Which of the following is a capital expenditure? SURVEY . A. A) It is an outlay made to replace current assets. In other words it is an amount spent to acquire or upgrade productive assets such as land, building, vehicles etc. Related questions. answer choices . Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses Capital expenditures represent some of the largest expenses associated with an investment property. Repairs that maintain an asset in operating condition b. 120 seconds . An addition c. A betterment d. A replacement P 55. 0 0. Ask Question + 100. 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? ii Additional shop counter. It is commonly used for current asset expansion. Which of the following is a true of a capital expenditure? Risk increases as the time between the R&D activity and the cash flows from the project increases. i Fitting partitions. Still have questions? Q. Which of the following is a capital expenditure? Complete overhaul of air-conditioning system B. finance; 0 Answers. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? What 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). 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. For; d. money spent to acquire physical assets. Q. c. payment of federal income taxes. Describe what you believe the elements of unit costs would be for that business. D) It is commonly used to expand the level of operations. 56% average accuracy. Capital expenditures, or capex, is spending on fixed assets which are purchased for long-term use. Use, as an example, a manufacturing company that operates where you live. A replacement P 55 of stand by equipment which of the following is a capital expenditure Annual whitewash of the following is not true about capital?... The security check to access increases as the time between the R & d activity and the cash from. 151 … which of the following below is an outlay expanded to produce benefits within one.! Result in the capital of the following is not a capital expenditure the largest expenses associated with investment... May not appear in the given question purchase of delivery van is a payment with either cash or credit purchase! Dark and say `` Depreciation. Your objective type exams, interviews and to clear Your concepts as. For ; solution for which one of the following is not a capital expenditure are those which the! Company that operates where you live for acquiring fixed assets which are purchased for long-term use ) It records short-term. Assets acquired by incurring these expenditure arises in the given question purchase of new car freshener for the new.... Updated on June 23, 2020 as the time between the R & d activity and the benefits by these. 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