Answer:
The correct answer is letter "B": Extend the useful life of an asset beyond its original estimate by several years.
Explanation:
Ordinary repairs refer to routine maintenance that equipment and machinery need to work over its estimated useful life. <em>It does not aim to extend the life of the equipment but helps meeting the estimated time a company plans to use those assets.</em> In accounting terms, ordinary repairs demand to record a debit to an expense account and a credit to a cash account.
Answer:
An increase in the value of an asset
A portion of profits paid back to shareholders
Explanation:
Capital gain can be defined as a rise in the value of a capital asset (which could be investment or real estate) that facilitates a higher worth than the original purchasing price.
Dividend can be defined as a distribution of profits by a certain corporation to its shareholders.
Answer:
Implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
Explanation:
Rent, salary, and other operating expenses are considered explicit costs. They are all recorded within a firm's financial statements, meaning they are present and clearly shown or reported as a separate cost. The main difference between the two types of costs is that implicit costs are opportunity costs, meaning that it is present but it is not initially shown or reported as a separate cost, while explicit costs are expenses paid with a company's own tangible assets. In other words, explicit costs are always shown, implicit costs are not, at least initially, exactly like the meaning words suggest.
Answer:
B. the cost of the business owner’s time and labor paying for gas for a company vehicle
Explanation:
Explicit cost are known as actual costs. They are costs incurred in the running of a business or in the production process . They are usually reported in the financial statements.
Implicit costs are opportunity costs.
