Another Name for a Capital Expenditure Is

question 22

Multiple Choice

Another name for a capital expenditure is:

• A) Revenue expenditure.
• B) Asset expenditure.
• C) Long-term expenditure.
• D) Contributed capital expenditure.
• E) Balance sheet expenditure.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings and dividends without needing to increase equity or borrowings.

Debt-Equity Ratio

The measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Net Income

The overall earnings of a business following the deduction of all costs, taxes, and expenses from its gross revenue.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.