Expenditures That Add to the Utility of Fixed Assets for More

question 51

Multiple Choice

Expenditures that add to the utility of fixed assets for more than one accounting period are called:

• A)committed expenditures.
• B)revenue expenditures.
• C)current expenditures.
• D)capital expenditures.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used by governments, businesses, and individuals to allocate resources.

Utility-maximizing Combination

The selection of goods and/or services that provides the highest utility (satisfaction) for a consumer subject to their income and the prices of the goods/services.

Total Utility

The total satisfaction received from consuming a specific quantity of a good or service.

Marginal Utility

The extra benefit or satisfaction gained by the consumption of one more unit of a product or service.