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3 years ago

What are the criteria for distinguishing between a deductible expense and a capital expenditure?

1 answer:

6 0

The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.

If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.

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nineteen airlines have partnered, including air france, delta, czech airlines, air europa, china eastern, and kenya airways, to

iren [92.7K]

This partnership is most likely to an Strategic Alliance.

Strategic alliance is an agreement between two companies to work on the mutually beneficial project while each of the company work independently.

It is done for expanding business in the new market, new product line or to compete with the competitor.

This allows companies to work collectively and share the profit earned. It helps in sharing knowledge, skills, saving the resources.

It may be for short period or long period depending upon the task to be accomplished.

Under this agreement, the responsibility of the each member is clearly defined.

To know more abut strategic alliance:

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2 years ago

Firefly Inc. sold land for $225,000 cash. The land has been purchased five years earlier for $275,000. The loss on the sale was

mel-nik [20]

Answer:

Cash inflow of $225,000

Explanation:

Land is a non-current asset and the proceeds from sale of non-current assets form part of<em> investing activities</em>. Firefly Inc. has a cash inflow of $225,000 from the sale of land. So the cash received from sale of land will be added to cash flow from investing activities in the head: <em>Purchase or Sale of an Asset. </em>

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3 years ago

Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals d

Irina-Kira [14]

Answer:

b. can be calculated by modifying the break-even equation.

Explanation:

As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.

It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.

Adjust the contribution margin per unit and units sold based on an expected sales promotion.

Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.

Alter the contribution margin for the effects of changing to a just-in-time production system.

If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,

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3 years ago

Economists agree that ________________ inflation reduces real output.

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Answer: "cost-push" .
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3 years ago

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3 years ago