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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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The correct answer is b

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3 years ago

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givi [52]

Answer:

Group think bias

Explanation:

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3 years ago

What Cookery method is used for a matured poultry? <br>

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3 years ago

Like the capital asset pricing model, the bond yield plus risk premium (BYPRP) approach is useful for __________.

jekas [21]

Answer:

nanning is the first one for

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3 years ago

Consider the market for natural gas. In this industry, low average costs are obtained only through large-scale production. In ot

Serjik [45]

Answer:

A) Economies of scale

Explanation:

Producing natural gas is very expensive and requires a large investment. The costs and risks of the processes involved in the upstream and downstream of natural gas discourage competition. Besides requiring a large initial investment, a drilling company can never be 100% sure that they will be able to find and extract natural gas or petroleum. So besides having to spend a lot of money, you are assuming a great risk.

Even if a competitor finds natural gas, in order for the downstream process to be profitable, they must be able to extract a large volume to achieve economies of scale.

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3 years ago