Which of the Following Expenditures Would Be Most Suspicious If

question 37

Multiple Choice

Which of the following expenditures would be most suspicious if it were capitalized?

• A) Equipment purchases
• B) Computer purchases
• C) Prepaid expenses
• D) Salaries to the top management

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit of an investment by its cost.

Income From Operations

Income from operations refers to the profit realized from a firm's core business activities, excluding deductions for interest and taxes.

Office Salaries Expense

The costs associated with paying salaries to administrative and office employees.

Indirect Expense

Expenses incurred that are not directly linked to a specific product or service, such as utilities or rent for the business premises.