Capital Assets

question 7

Multiple Choice

Capital assets:

• A)have an expected use of less than one year.
• B)have little or no effect on the organization's operations.
• C)are generally expensed.
• D)are acquired for fairly small sums of money.
• E)are not bought and sold in the regular course of business.

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Definitions:

Installation

refers to the process of setting up and configuring equipment or software to make it ready for use.

Repairs

Expenditures to restore or maintain an asset in its normal operating condition without significantly improving its life or value.

Machine

An equipment or apparatus designed to perform a specific task, often powered by electricity or mechanical energy.

Land Improvement

Enhancements made to a piece of land to increase its value, such as landscaping, paving, and installing utilities.