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