A Characteristic of Capital Expenditures Is That the Expenditures Occur

question 94

True/False

A characteristic of capital expenditures is that the expenditures occur frequently during the period of ownership.

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Definitions:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Price

The sum of money anticipated, demanded, or provided as compensation for something.

Long-run Equilibrium

A state in which economic forces such as supply and demand are balanced, and all adjustments to economic conditions have been made, often characterized by firms earning normal profit in perfectly competitive markets.

Short-run Equilibrium

A state where supply and demand are balanced at a particular price level within a short-term period, with at least one fixed input.