An Expenditure That Increases an Asset's Capacity or Extends Its

question 70

Multiple Choice

An expenditure that increases an asset's capacity or extends its useful life is a(n) :

• A) capital expenditure.
• B) expense.
• C) addition.
• D) improvement.

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Definitions:

Capacitance

Capacitance is the ability of a system or component to store an electrical charge, measured in Farads, which is a key parameter in designing and understanding electrical and electronic circuits.

Motor Starter Coil

An electromechanical component in a motor starter that creates the magnetic field needed to operate the starter contacts.

Power Circuit

The portion of an electrical system that delivers and manages the distribution of power to various components or machinery.