Planning for Capital Expenditures Is Necessary for All of the Following

question 154

Multiple Choice

Planning for capital expenditures is necessary for all of the following reasons except:

• A) machinery and other fixed assets wear out
• B) expansion may be necessary to meet increased demand
• C) amounts spent for office equipment may be immaterial
• D) fixed assets may fall below minimum standards of efficiency

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Definitions:

Personally Liable

The responsibility of an individual to fulfill debt or obligations from their own assets, rather than those of a corporation or entity.

Gross Returns

The total return on an investment before any deductions are made for costs or fees.

Written Agreement

A formalized record of a contract or arrangement between parties, documented in written form.

Legal Pitfalls

Situations or actions that could potentially lead to legal issues or disputes due to non-compliance with laws, regulations, or standard practices.