Greater risk is associated with improving existing products than creating new products. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Which of the following is not a capital expenditure: a. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N) paid property taxes of $75,000 for the first year the new building is occupied. A. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. C. investments in training and personnel development. Cost of dismantling a building in case a … (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. b. 29. Monthly rent of a delivery truck. O 1. Normal Installation Fees On A Long-lived Asset. Sales tax paid in conjunction with the purchase of office equipment. Edit. Which of the following is not a capital expenditure? 6. Greater risk is associated with improving existing products than creating new products. Recently Asked Questions. Fees not received is not treated as income in case of Chartered Accountants because of a) concept of objectivityb) realisation c ) cost concept d) all … of the above the parties.6.Somesh purchased goods to the value of 5,000 from Ramesh on 1st April, 2020. Question: QUESTION 4 Which Of The Following Is Not A Capital Expenditure? Incidental repairs & maintenance are not capital expenditures. Which of the following is not a capital expenditure? Your IP: 173.249.6.68 An example of a growth expense is an addition to a building or purchase of another business to add to the current business. aishahkamal91_18762. c. A tune-up of a company vehicle. Interest Charges During The Active Construction Period Of A New Building. Edit. Purchasing a patent is a capital investment. by aishahkamal91_18762. B. investment in a new machine only. A. D. investment in a new factory and in a new machine. Installation of elevators to replace escalators is a capital investment. Air ticket paid for the purchase of machinery. d. Replacement of an old motor with a new one in a piece of equipment. Which of the following is not a capital expenditure? What is a "repair?" R&D activities is correct? Get more help from Chegg. scrap value. Which of the following is not a capital expenditure? d-none. a) Payment of an account payable b) Retirement of bonds payable c) Payment of federal income taxes d) none of these 2) which of the following is not a capital expenditure? Please enable Cookies and reload the page. See below for the correct answer. Monthly rent of a delivery truck. Tyler f. 7 years ago. B. A) Advertising expenditures to introduce a new product line. D. investments in a new office building. A manufacturing company spent the following amounts on the import and installation of a machine: Freight = R s. 5 0, 0 0 0 Insurance premium = R s. 1, 0 5 0 Replacement of a part damaged in transit not covered under insurance policy = R s. 6, 0 0 0 Based on the above data, capital expenditure … No. Payment of an account payable b. 2 - d - a replacement in kind is not a capital expenditures. B. investments in research and development. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. 5. Normal repairs and maintenance. a. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. replacing an engine in a company car A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $5,000, and special acquisition fees of $2,000, would have a cost basis of Capital Expenditure and Revenue Expenditure DRAFT. Capital expenditures tend to be quite substantial in certain industries, such as utilities and manufacturing. It is commonly used for current asset expansion. a. e. The cost of installing a piece of equipment. C. Sales tax paid in conjunction with the purchase of office equipment. Sales Tax Paid In Conjunction With The Purchase Of New Machinery 3. B. Which of the following is a capital expenditure? • An expenditure made in connection with a machine being used by an enterprise should be a. expensed immediately if it merely extends the useful life but does not improve the quality. Which of the following is a capital expenditure? From a financial analysis perspective, a business should at least maintain its historical level of capital expenditures. Your IP: 176.9.160.118 Annual Maintenance Expenditures On A Fleet Of Delivery Trucks. Operating expenses are shorter-term expenses required to meet the ongoing operational costs of running a business. D) An amount paid to acquire a patent with a … Explanation: A capital expenditure is any expense met by the firm to either buy a long - term asset or improve its capability. Save. 71 times. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. a. Usually, this expense is recognized on the statement of cash flows as an investing activity. Which of the following is not true of capital expenditure? Please enable Cookies and reload the page. Salary paid to workers ... Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments. b. expensed immediately if it merely improves the quality but does not extend the useful life. Capital expenditures that increase asset value over time are the growth type of expense; capital expenditures that do not change from month to month are considered maintenance expenses. Solution for Which of the following expenditure is not capital expenditure for equipment? Purchasing a patent is a capital investment. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Assessing risk is a trivial part of research and development. You may need to download version 2.0 now from the Chrome Web Store. Performance & security by Cloudflare, Please complete the security check to access. Which of the following expenses should not be treated as capital expenditure? 3 months ago. Moreover, any expenditure which is incurred for the purpose of increasing profit earning capacity or reducing cost of production is a capital expenditure. For; A complete overhaul of an air-conditioning system. a tune-up of a company vehicle. Advertising expenditures to introduce a new product line is not a capital expenditure. R&D activities is correct? Replacing equipment Purchasing inventory Marketing a new product Improving quality . Business, Education. Capital expenditure are those which enhance the life of the asset and the benefits by incurring these expenditure arises in the coming years ahead. Expert Answer 100% (1 rating) Q 66. B) Sales tax paid in conjunction with the purchase of new machinery. Performance & security by Cloudflare, Please complete the security check to access. Which of the following is not a capital expenditure? Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). Spending Rs.8.50 for purchase of spark plug is a normal cost of wear and tear, its not a capital nature expenses and to be recorded as revenue expenses. answer choices . Which of the following is not a capital expenditure? Explanation: Buying a new machinery and associated sales tax is a capital investment. 66% average accuracy. Testing for use c. Uninsured theft d. Sale tax e. None… 3 months ago. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. b. which of the following is not a capital expenditure? 5. Multiple Choice Advertising expenditures to introduce a new product line Sales tax paid in conjunction with the purchase of new machinery Installation of elevators to replace escalators An amount paid to acquire a patent with a remaining life of only three years . • Favorite Answer. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? Another way to prevent getting this page in the future is to use Privacy Pass. Assembly b. Which of the following is true of a capital expenditure? Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Which of the following is a capital expenditure? Which of the following is a capital expenditure? Repair: expenditure for keeping the property in an ordinarily efficient operating condition. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. A. investment in a new factory only. Which of the following is a capital expenditure? salvage value is to the same as. cost to acquire a printing press. d. Replacement of an old motor with a new one in a piece of equipment. Get more help from Chegg. D) An amount paid to acquire a patent with a remaining life of only three years. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets, (tangible or intangible) which are related to the business for the purpose of earning profit and not for resale such as land and building, plant and machinery, furniture & fixture, goodwill, patent rights and copyrights etc. B. O 2. Capital Expenditures are for fixed assets, which are expected to be productive assets for a long period of time. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … A. Architect's fees for a new building. e. The cost of installing a piece of equipment. 1) Which of the following is a capital expenditure? 100% correct and accurate. It is an outlay expected to produce benefits within one year. c. A tune-up of a company vehicle. 0. E. Which of the following is NOT capital expenditure? Multiple Choice Advertising expenditures to introduce a new product line Sales tax paid in conjunction with the purchase of new machinery Installation of elevators to replace escalators An amount paid to acquire a patent with a … All the amounts paid upto the point an asset is ready for use is included in cost of that asset. Capital Expenditure and Revenue Expenditure DRAFT. Normal repairs and maintenance. Which of the following is considered a capital expenditure? Retirement of bonds payable c. Payment of federal income taxes d. None of these 29. Which of the following is not a capital expenditure? A complete overhaul of an air-conditioning system. A. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Which of the following is a capital expenditure? Risk increases as the time between the R&D activity and the cash flows from the project increases. Monthly rent of a delivery truck. Repairs that maintain an asset in operating condition b. You may need to download version 2.0 now from the Chrome Web Store. The following capital expenditures are typically included in a firm's capital budget: A. investments in information technology software. Get Answer. Which of the following is a capital expenditure? Which of the following capital expenditures may not appear in a firm's capital budget? Capital expenditures are a long-term investment, meaning the … Which of the following is a capital expenditure? • This is accounted for with an expense known as depletion. The addition of a building wing. Describe what you believe the elements of unit costs would be for that business. Expenses paid on installation of a plant. The construction of a new wing on an existing building is descried as an. C) Installation of elevators to replace escalators. B. Cloudflare Ray ID: 609e759c0c2c2b1a The addition of a building wing B. Related questions. Fire insurance premium on a new building. A. C) Installation of elevators to replace escalators. 1 - d none of these are consider capital expenditures. • Advertising expenditures to introduce a new product line. 6. Replacement of an old motor with a new one in a piece of equipment C. A tune-up of a company vehicle D. A complete overhaul of an air-conditioning system E. The cost of installing a piece of equipment C. investment in training employees only. 1st - University. Which of the following below is an example of a capital expenditure? Cloudflare Ray ID: 609e759b99d4c29f A) Advertising expenditures to introduce a new product line. Freight Charges Incurred On The Purchased Of New Equipment. A. In cases such as mining, land is depleted of natural resources. Question: Which Of The Following Costs Is Normally Not A Capital Expenditure? Use, as an example, a manufacturing company that operates where you live. a - repairs. Capital expenditure should not be confused with operating expenses (OpEx). Installation of elevators to replace escalators is a capital investment. Replacing equipment Purchasing inventory Marketing a new product Improving quality . addition. The addition of a building wing. B. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. Replacement of an old motor with a new one in a piece of equipment c. A tune-up of a company vehicle d. Te cost of installing a piece of equipment e. Te addition of a building wing Explore answers and all related questions . Risk increases as the time between the R&D activity and the cash flows from the project increases. Repair of plant and machinery B. Another way to prevent getting this page in the future is to use Privacy Pass. A complete overhaul of an air-conditioning system b. (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. Installation Of Elevators To Replace Escalators O 4. Land Land is a special type of capital expenditure as its value doesn't typically deprecate because it generally doesn't go down in value. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? C. Sales tax paid in conjunction with the purchase of office equipment. A. a. Advertising expenditures to introduce a new product line is not a capital expenditure. Tags: Question 9 . c. capitalized if it maintains the machine in normal operating condition. Expenditure incurred in the construction of parking space for staff. Sometimes the expenditure even not resulting in the increase of profit earning capacity but acquires an asset comparatively permanent in nature will also be a capital expenditure. A. C. Monthly fuel costs for a truck owned by the company. Call Hours: 9am - 5pm (Mon - Fri) +234-9062547747 info@myschool.ng Assessing risk is a trivial part of research and development. Explanation: Buying a new machinery and associated sales tax is a capital investment. The following are illustrative examples of capital expenditures. I think its either a or d, but i cant guess An addition c. A betterment d. Which of the following is not a capital expenditure: a. 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