Which of the Following Statements Regarding Capital Expenditures Is Incorrect

question 117

Multiple Choice

Which of the following statements regarding capital expenditures is incorrect?

• A) Capital expenditures are purchases of long-term assets.
• B) The decision to purchase long-term assets is part of a strategic plan.
• C) Capital expenditures include delivery trucks, computer systems, and manufacturing equipment.
• D) Installment payments related to the purchase of short-term assets are included in the capital expenditures budget.

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Definitions:

Married Couple

A legal union between two individuals recognized by law, often entailing specific rights, responsibilities, and benefits under the tax code.

Personal Exemption

A deduction that allowed taxpayers to reduce taxable income for themselves and for any dependents claimed, notably reduced to $0 for tax years 2018 through 2025 under the Tax Cuts and Jobs Act.

Qualifying Relative

A designated family member or other individual who meets specific IRS criteria for dependency exemptions.

Blind

A status on tax filings that provides additional deductions or credits for individuals who are legally blind.