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

---

Definitions:

Reader's Digest

A monthly American general-interest family magazine, compact in size and known for its handpicked articles on various topics.

Saturday Evening Post

A historic American magazine that has been published in various forms since 1821, known for its journalism, fiction, and iconic cover art.

Eleanor Roosevelt

A prominent American political figure, humanitarian, and First Lady from 1933 to 1945, known for her advocacy for civil rights, women's rights, and social reforms.

First Lady

The title used in some countries for the wife of the head of state or, in some cases, a woman occupying the comparable position without being married to the head of state.