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2 years ago

Which of the following would be considered a capital expenditure?

Business

1 answer:

Alborosie2 years ago

8 0

Answer:

B. Paying city inspection fees for new equipment

Explanation:

Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.

City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.

Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.

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A year ago, the Really Big Growth Fund was being quoted at an NAV of $21.98 and an offer price of $22.90. Today, it's being

Allisa [31]

Answer:

12.75%

Explanation:

Given that

Net assets value = $24.19

Dividend and capital gain distribution = $1.63

Offer price = $22.90

The computation of Holding period return is shown below:-

= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price

= ($24.19 + $1.63 - $22.90) ÷ $22.90

= $2.90 ÷ $22.90

= 12.75%

So, for computing the holding period return we simply applied the above formula.

5 0

2 years ago

Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a

d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0

2 years ago

A man earns Rs.450 in a month and spends 85% of his income.what does he save?

Advocard [28]

He saves Rs. 67.5 (take 450 times .85- since its a % and then subtract that from 450)

8 0

2 years ago

Jennifer owns a pig farm near Salina, Kansas. Last year she earned $39,000 in total revenue while incurring $38,000 in explic

leonid [27]

Answer:

Jennifer earned an accounting profit of $1,000 and economic loss of $26,000

Explanation:

Total revenue for Jennifer is $39,000.

Explicit costs incurred is $38,000.

The implicit cost or opportunity cost involved is $27,000.

Accounting profit takes into account explicit costs only. It does not include implicit costs involved in the production process.

Jennifer has earned an accounting profit of

= Total revenue - Explicit costs

= $39,000 - $38,000

= $1,000

Economic profit takes into account the explicit cost as well as implicit cost.

The economic profit earned

= Total revenue - Total costs

= $39,000 - ($38,000 + $27,000)

= - $26,000

7 0

2 years ago

Subjective Questions

miv72 [106K]

Answer:

2.look at explanation.

Explanation:

2.Profession refers to type of a job that needs special training or skill after getting certain knowledge related to particular Sector

6 0

2 years ago