Distinguish between a capital and an operating expenditure

Assignment Help Accounting Basics
Reference no: EM13130860

distinguish between a capital expenditure and an operating expenditure. explain why a company might want to capitalized expenditures rater than expense them. what impact would such a decision have on its financial statement?

Reference no: EM13130860

Questions Cloud

Fractions in real life situations : What are some examples of real-life situations where the addition of fractions, multiplication of fractions, or division of fractions might be required?
Calculate the heat of combustion of magnesium metal : A 0.1946 g piece of magnesium metal is burned in a constant volume calorimeter that has a heat capacity of 1349 J/°C.
Find the largest component probabilty that can be achieved : The engineer can spend $173 for the two components. To the nearest two decimal places, what is the largest component probabilty that can be achieved?
Question regarding compounded annual growth rate : Sales for Hanebury Corporation's just-ended year were $12 million. Sales were $6 million 5 years earlier. Suppose someone calculated the sales growth for Hanebury as follows: Sales doubled in 5 years.
Distinguish between a capital and an operating expenditure : distinguish between a capital expenditure and an operating expenditure. explain why a company might want to capitalized expenditures rater than expense them. what impact would such a decision have on its financial statement?
Stochastic model and deterministic model : What are mathematical model and computer simulation? What are stochastic model and deterministic model?
Lower of cost or market concept : If the cost of an item is $75, the currrent replacement cost is $64, and the selling price is $95, the amoount included in inventory according to the lower of cost or market concept is ??
Calculate the stp molar volume for oxygen : A 2.154 g sample of HgO produces 125 mL of oxygen gas. The gas is collected over water at 24 C and an atmospheric pressure of 763 torr.
Explain if this concept is relevant for personal finance : Why is it important to understand the difference between an originating temporary difference and permanent difference in a company? Explain if this concept is relevant for personal finance. ( Intermediate Accounting)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem regarding total overhead variance

Actual overhead for June was $15,800 variable and $9,100 fixed, and standard hours allowed for the product produced in June was 3,000 hours. The total overhead variance is:

  What is the balance in cash

During February 2008, its first month of operations, the Rutwing Enterprises issued stock in exchange for cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, w..

  Schedule of noncash investing and financing activities

Prepare the statement of cash flows for the year ended December 31, 20X6, using the direct method, and include a schedule of noncash investing and financing activities if necessary.

  Purchase price in the consolidated financial statement

How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2011?

  Entries for reacquisition and resale of stock

On August 10, Jameson Corporation reacquired 8,000 shares of its $100 par value common stock at $134. The stock was originally issued at $110. The shares were resold on November 21 at $145. Provide the entries required to record the reacquisition ..

  Briefly describe what the company did wrong

Please find a real-world example of a company that has been in the news, and briefly describe what the company did wrong. Some ideas for companies include, but are not limited to, Enron, WorldCom, Andersen, Dell, and Xerox.

  Total expected cash receipts

For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during September are:

  How would the assets appear on the balance sheet

Any plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2010 on these newly acquired assets.

  Sum-of-the-years-digits method

At the time Fisher Corporation became a subsidiary of Ashbury Corporation, Fisher switched depreciation of its plant assets from the straight-line method to the sum-of-the-years'-digits method used by Ashbury.

  Absorption-costing income statement

The gross margin that the company would disclose on an absorption-costing income statement is:

  Tax consequences to bluejay

What are the tax consequences to Bluejay and to Redbird as a result of Bluejay's liquidation?

  Find the cumulative effect of accounting change

The change will result in a $1,800,000 increase in the start inventory at January 1, 2013. Consider a 40% income tax rate. Find the cumulative effect of this accounting change on beginning retained earnings

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd