Capital Expenditures Are Costs of Acquiring, Constructing, Adding, or Replacing

question 62

True/False

Capital expenditures are costs of acquiring, constructing, adding, or replacing property, plant and equipment.

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Definitions:

Contributed Capital

Contributed Capital, also known as paid-in capital, refers to the amount of money raised by a company through the sale of its equity shares.

Premium on Common Stock

The amount by which the sale price of a share of common stock exceeds its par value.

Organization Expense

Costs incurred in the creation and organization of a corporation, such as legal fees, that may be amortized over time.

Stock Warrant

A financial instrument that gives the holder the right, but not the obligation, to buy a company's stock at a specific price before a certain date.