Reference no: EM13719421
Classification of expenditures
Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers.
a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems
b. An outlay of $20,000 to purchase patent rights from an inventor
c. An outlay of $80,000 for a major research and development program
d. An $80,000 investment in a portfolio of marketable securities
e. A $300 outlay for an office machine
f. An outlay of $2,000 for a new machine tool
g. An outlay of $240,000 for a new building
h. An outlay of $1,000 for a marketing research report
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Classification of expenditures
: Classification of expenditures Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers.
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