Capital Expenditures Are Not Immediately Expensed Because These Items

question 50

Multiple Choice

Capital expenditures are not immediately expensed because these items:

• A) do not extend the life of an asset.
• B) return an asset to its prior condition.
• C) increase the asset's capacity.
• D) do all of the above.

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Definitions:

Opportunity Cost

The importance of the top second option lost by deciding on a particular path.

Farming

The practice of cultivating the land or raising stock, such as the growing of crops or the raising of livestock to produce food, fiber, and other materials.

Brocolli

A green vegetable with a large flowering head, often consumed for its nutritional value.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant, in the production process.