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

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Definitions:

Return on Equity

A financial ratio indicating the relative profitability of a company, calculated by dividing net income by shareholder equity.

Stockholders' Equity

The ownership stake of shareholders in a corporation, calculated by subtracting liabilities from the total assets, representing the remaining interest.

Income Statement

A report indicating a business's income, outgoings, and net earnings during a defined timeframe.

Income Tax Expense

The amount of money a company or individual owes to the government based on their taxable income for a given period.