Which of the Following Statements Is Incorrect

question 125

Multiple Choice

Which of the following statements is incorrect?

• A)Replacement of a truck's tires would be a capital expenditure.
• B)Replacement of carpet in an office,damaged by a coffee spill,would be a repairs expense.
• C)Replacement of a roof on a newly purchased building before using it as a store would be a capital expenditure.
• D)The cost of repainting a hallway would be maintenance expense.

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Definitions:

Nominal Output

The total value of goods and services produced by an economy, measured in current prices without adjusting for inflation.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Discretionary Fiscal Policy

Government strategy that includes altering its expenditure and taxation levels to oversee and impact a country's economic conditions.

Government Securities

Government securities are financial instruments issued by the government to finance its expenditures, offering investors a return in the form of interest payments.