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ASHA 777 [7]
3 years ago
12

Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca

r cleaning the carpet in the front room tune-up for a company truck replacing all burned-out light bulbs in the factory
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

The correct answer is letter "A": replacing an engine in a company car.

Explanation:

Capital Expenditures refers to the company's expenditure on physical assets such as buildings or equipment. Capital expenditure is unusual and can not be deducted from income for tax purposes; instead, the value of capital expenditure is added to the assets of the company and the value is reduced annually by depreciation and amortization.

Therefore, <em>replacing an engine in a company car is a necessary, unexpected expense the firm has to incur.</em>

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Pow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. Th
sergeinik [125]

Answer:

b. 2018 net income is overstated by $750

Explanation:

As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.

Also we can deduct the same logic considering the accounting equation

Assets = liab + equity

if asssets are 750 higher than it should, then Equiy is higher as well

+750  = +750

Equity is affected for the net income and dividends. Thus, we can also conclude the net income is overstated by 750

8 0
3 years ago
An account that generates interest income on the available balance in the account.
o-na [289]

An interest-bearing account is an account that generates interest income on the available balance in the account.

What is an interest-bearing account?

An interest-bearing account computes interest based on the balance outstanding on the loan or investment account, for instance, a monthly compounding deposit account where the interest paid on the account on monthly basis on the available balance before interest computation.

There also non interest-bearing account which only promises a particular amount when the deposit or investment account matures rather than paying on the balance.

Find out more about interest-bearing account on:brainly.com/question/11484066

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5 0
1 year ago
What is diversification?
Snowcat [4.5K]

Answer:

A

Explanation:

5 0
3 years ago
When reporting inventory using the lower of cost or market, market should not be less than:
Natali5045456 [20]

Answer:

Net realizable value less a normal profit margin.

Explanation:

Lower of cost or market rule of inventory states that cost of inventory recorded must be that at which cost is lower, and the original cost is the current market price.

This occurs when the inventory has become obsolete, market price has declined, or inventory has deteriorated

Net realisable value is defined as selling price minus estimated cost of completion.

So the market value should not be less than net realizable value less a normal profit margin.

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During the current year, Ethan performs personal services as follows: 800 hours in his information technology consulting practic
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