Expenditures That Add to the Utility of Fixed Assets for More

question 70

Multiple Choice

Expenditures that add to the utility of fixed assets for more than one accounting period are

• A) committed expenditures
• B) revenue expenditures
• C) utility expenditures
• D) capital expenditures

---

Definitions:

Stock Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time period.

Expected Rate of Return

The anticipated yield or gain that an investor expects to earn on an investment, based on past or projected future performance.

Premium

The amount by which the price of something, especially a financial asset, exceeds its nominal or face value.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.