Which of the Following Would Be Increased by an Accounting

question 25

Multiple Choice

Which of the following would be increased by an accounting policy change involving the capitalisation of some repairs expenses?

• A) expense
• B) revenue
• C) liabilities
• D) net profit.

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Definitions:

Capital-Budgeting

The process by which investors or managers evaluate and select long-term investments based on their potential to generate net revenues.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Risk-Free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government securities.

Expected Rate

The rate of return that an investor anticipates earning on an investment without taking into account inflation or other factors that could affect the actual yield.