2 - d - a replacement in kind is not a capital expenditures. Repair of plant and machinery B. The construction of a new wing on an existing building is descried as an. (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. 29. The following capital expenditures are typically included in a firm's capital budget: A. investments in information technology software. Advertising expenditures to introduce a new product line is not a capital expenditure. 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. Architect's fees for a new building. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … 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. 6. Greater risk is associated with improving existing products than creating new products. 0. 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. • Assembly b. c. capitalized if it maintains the machine in normal operating condition. Tyler f. 7 years ago. 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. Installation Of Elevators To Replace Escalators O 4. Assessing risk is a trivial part of research and development. Assessing risk is a trivial part of research and development. 71 times. Explanation: A capital expenditure is any expense met by the firm to either buy a long - term asset or improve its capability. Business, Education. aishahkamal91_18762. Which of the following is not a capital expenditure? Use, as an example, a manufacturing company that operates where you live. 5. Explore answers and all related questions . 1) Which of the following is a capital expenditure? 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. Testing for use c. Uninsured theft d. Sale tax e. None… C) Installation of elevators to replace escalators. A. Which of the following is NOT capital expenditure? c. A tune-up of a company vehicle. Capital Expenditures are for fixed assets, which are expected to be productive assets for a long period of time. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. Monthly rent of a delivery truck. Purchasing a patent is a capital investment. Question: QUESTION 4 Which Of The Following Is Not A Capital Expenditure? a tune-up of a company vehicle. C. Monthly fuel costs for a truck owned by the company. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. Cloudflare Ray ID: 609e759b99d4c29f C. investments in training and personnel development. Fire insurance premium on a new building. Installation of elevators to replace escalators is a capital investment. The following are illustrative examples of capital expenditures. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Operating expenses are shorter-term expenses required to meet the ongoing operational costs of running a business. d. Replacement of an old motor with a new one in a piece of equipment. A) Advertising expenditures to introduce a new product line. a. Save. 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. C. Sales tax paid in conjunction with the purchase of office equipment. Explanation: Buying a new machinery and associated sales tax is a capital investment. Repair: expenditure for keeping the property in an ordinarily efficient operating condition. Freight Charges Incurred On The Purchased Of New Equipment. which of the following is not a capital expenditure? Edit. Please enable Cookies and reload the page. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. A. Which of the following is not a capital expenditure? d-none. You may need to download version 2.0 now from the Chrome Web Store. B. A. Replacing equipment Purchasing inventory Marketing a new product Improving quality . Which of the following is not a capital expenditure? Annual Maintenance Expenditures On A Fleet Of Delivery Trucks. Usually, this expense is recognized on the statement of cash flows as an investing activity. D) An amount paid to acquire a patent with a remaining life of only three years. (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. Which of the following is not a capital expenditure? 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. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. 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. Explanation: Buying a new machinery and associated sales tax is a capital investment. Capital expenditure should not be confused with operating expenses (OpEx). A complete overhaul of an air-conditioning system. B. Payment of an account payable b. 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. Which of the following is considered a capital expenditure? B. Which of the following is a capital expenditure? 1 - d none of these are consider capital expenditures. 3 months ago. Which of the following is not a capital expenditure? d. Replacement of an old motor with a new one in a piece of equipment. A. Normal repairs and maintenance. A. investment in a new factory only. For; Which of the following expenses should not be treated as capital expenditure? c. A tune-up of a company vehicle. Interest Charges During The Active Construction Period Of A New Building. C. investment in training employees only. Which of the following is a capital expenditure? B. investments in research and development. B) Sales tax paid in conjunction with the purchase of new machinery. C) Installation of elevators to replace escalators. O 2. Your IP: 173.249.6.68 b. Incidental repairs & maintenance are not capital expenditures. E. • Normal Installation Fees On A Long-lived Asset. Call Hours: 9am - 5pm (Mon - Fri) +234-9062547747 info@myschool.ng The addition of a building wing. 66% average accuracy. 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 . Performance & security by Cloudflare, Please complete the security check to access. Another way to prevent getting this page in the future is to use Privacy Pass. salvage value is to the same as. Performance & security by Cloudflare, Please complete the security check to access. B) Sales tax paid in conjunction with the purchase of new machinery. 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 6. No. Get more help from Chegg. b. e. The cost of installing a piece of equipment. Get Answer. Capital Expenditure and Revenue Expenditure DRAFT. The addition of a building wing B. by aishahkamal91_18762. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? Q 66. 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). Which of the following is a capital expenditure? b. expensed immediately if it merely improves the quality but does not extend the useful life. R&D activities is correct? D. investment in a new factory and in a new machine. Retirement of bonds payable c. Payment of federal income taxes d. None of these 29. • It is commonly used for current asset expansion. A. 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? A. scrap value. Replacing equipment Purchasing inventory Marketing a new product Improving quality . R&D activities is correct? D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Expenses paid on installation of a plant. 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. A complete overhaul of an air-conditioning system. Which of the following is true of a capital expenditure? Please enable Cookies and reload the page. Air ticket paid for the purchase of machinery. 1st - University. Installation of elevators to replace escalators is a capital investment. 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. Recently Asked Questions. Repairs that maintain an asset in operating condition b. D) An amount paid to acquire a patent with a … Related questions. Which of the following is not true of capital expenditure? O 1. Greater risk is associated with improving existing products than creating new products. Which of the following below is an example of a capital expenditure? Another way to prevent getting this page in the future is to use Privacy Pass. 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 … Which of the following is a capital expenditure? All the amounts paid upto the point an asset is ready for use is included in cost of that asset. Which of the following is not a capital expenditure? 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. Solution for Which of the following expenditure is not capital expenditure for equipment? Cloudflare Ray ID: 609e759c0c2c2b1a The addition of a building wing. cost to acquire a printing press. A. See below for the correct answer. Which of the following is not a capital expenditure? It is an outlay expected to produce benefits within one year. You may need to download version 2.0 now from the Chrome Web Store. 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? Capital Expenditure and Revenue Expenditure DRAFT. 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 not a capital expenditure: a. Normal repairs and maintenance. Capital expenditures tend to be quite substantial in certain industries, such as utilities and manufacturing. a - repairs. Advertising expenditures to introduce a new product line is not a capital expenditure. Get more help from Chegg. Capital expenditures are a long-term investment, meaning the … Describe what you believe the elements of unit costs would be for that business. Risk increases as the time between the R&D activity and the cash flows from the project increases. A. Cost of dismantling a building in case a … Which of the following is a capital expenditure? Tags: Question 9 . Expenditure incurred in the construction of parking space for staff. answer choices . An example of a growth expense is an addition to a building or purchase of another business to add to the current business. Which of the following is a capital expenditure? 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. D. investments in a new office building. 3 months ago. Expert Answer 100% (1 rating) B. Your IP: 176.9.160.118 Monthly rent of a delivery truck. 5. B. investment in a new machine only. Sales tax paid in conjunction with the purchase of office equipment. e. The cost of installing a piece of equipment. I think its either a or d, but i cant guess This is accounted for with an expense known as depletion. What is a "repair?" An addition c. A betterment d. Purchasing a patent is a capital investment. Favorite Answer. Which of the following capital expenditures may not appear in a firm's capital budget? Question 5 4 pts (co 4) Which of the following is not a capital expenditure? 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. addition. Capital expenditure are those which enhance the life of the asset and the benefits by incurring these expenditure arises in the coming years ahead. Edit. 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 Which of the following is not a capital expenditure: a. 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 a. Question: Which Of The Following Costs Is Normally Not A Capital Expenditure? a. Moreover, any expenditure which is incurred for the purpose of increasing profit earning capacity or reducing cost of production is a capital expenditure. 100% correct and accurate. 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 … A) Advertising expenditures to introduce a new product line. Advertising expenditures to introduce a new product line. Monthly rent of a delivery truck. 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