--%>
Assignment Help - homework help

Capital expenditure

Expenditure that increases the dollar amount of fixed assets on the balance sheet. These outlays either increase the value of assets already owned or add additional assets. The payments increase the future benefit of an asset by extending the life of the asset, increasing quality, or increasing productivity. If the payment does this, then cost is recorded as an asset rather than as an expense. Capital expenditures don't reduce income all at once. Instead of the cost is allocated through depreciation expense over the time the asset is used to produce revenues.

 

 

   Related Questions in Managerial Accounting

  • Q : Key areas which business objectives

    Write a short note on the key areas which business objectives want to achieve?

    		•
  • Q : Accounting standard Normal 0 false

    Normal 0

  • Q : Federal budget Choose the right answer

    Choose the right answer from following. Which one did not contribute to the large Federal budget deficits in the year of 2002 and 2003? A) spending on the wars in Afghanistan and Iraq. B) low interest rates. C) Federal tax cuts. D) the recession of 2001 and its afterm

    		•
  • Q : Changing responsibilities of the

    Write a short note on the changing responsibilities of the management accountant?

    		•
  • Q : Why wealth creation is a longer-term

    Write a short note on why wealth creation is a longer-term concept?

    		•
  • Q : Capital account An account used in a

    An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning

    		•
  • Q : Define partnership A partnership is

    A partnership is stated as ‘the relationship which subsists among persons carrying on business in common with a view togain or profit’

    		•
  • Q : Functions explain how the provision of

    explain how the provision of management accounting information can assist the management of a company with planning, controlling, decision making and communicating

    		•
  • Q : Define Support Costs Support Costs :

    Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.

    		•
  • Q : Define Cost Avoidance Cost Avoidance :

    Cost Avoidance: The action taken to decrease future costs, like replacing parts before they fail and cause harm to other portions. Cost avoidance might incur higher (or extra) costs in the short run however the final or life-cycle cost would be lower.

    		•