Which of the Following Are Considerations in Determining a Capital

question 14

Multiple Choice

Which of the following are considerations in determining a capital expense?

• A) effectiveness and equipment life expectancy
• B) cost and clinical application
• C) cost and equipment life expectancy
• D) number of clients to be served and cost

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Definitions:

Premium on Bonds Payable

The extra amount over the face value that investors are willing to pay for a bond, reflecting better interest or lower risk.

Debit Balance

A situation in an account where the sum of debits exceeds the sum of credits, indicating assets or expenses.

Contra Account

An account used in financial reporting to reduce the value of a related account, creating a net balance that reflects the true value of an asset or revenue.

Carrying Value

The amount at which an asset is recognized on the balance sheet, calculated as the asset's cost minus depreciation and amortization.