Which of the Following Equipment Related Costs Is Not Capitalized

question 66

Multiple Choice

Which of the following equipment related costs is not capitalized on a balance sheet?

• A)Equipment installation costs.
• B)Transportation costs associated with the equipment purchase.
• C)Equipment maintenance costs.
• D)The equipment's purchase price.

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Definitions:

Law of Demand

A principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Price

The amount of money required to purchase a good or service, determined by various market and economic factors.

Scarce Resources

Essential inputs that are available in limited quantities for the production of goods and services, leading to the problem of allocation.

Law of Demand

Economic principle stating that, ceteris paribus, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.