--%>
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 : Bank reconciliation statement Explain

    Explain the term bank reconciliation statement?

    		•
  • Q : Budget surplus Select the right answer

    Select the right answer of the question. If the economy has a standardized budget surplus, it means that: A) the public sector is exerting an expansionary impact on the economy. B) tax revenues would exceed government expenditures if full employment were achieved. C)

    		•
  • Q : Define Estimated Cost Estimated Cost :

    Estimated Cost: The procedure of projecting a future outcome in terms of cost, based on information accessible at the time. The estimated costs, instead of actual costs, are at times the basis for credits to work-in-process accounts a

    		•
  • Q : What is Variable Cost Variable Cost : A

    Variable Cost: A cost which differs with changes in the level of an activity, whenever the other factors are held constant. The cost of material treating to an activity, for illustration, differs according to the number of material de

    		•
  • Q : What is Controllable Cost Controllable

    Controllable Cost: A cost which can be influenced by the action of responsible manager. The word always refers to a particular manager as all costs are controllable by somebody.

    		•
  • Q : Cash coverage of growth A financial

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

    		•
  • Q : Budgetary accounts Accounts used in

    Accounts used in governmental accounting to record the budget amounts but not the actual amount. For example, at the beginning of the accounting period, the planned amount of tax revenue, revenue from license, and inflows from fines would be recorded as one amount in

    		•
  • Q : Calls in Arrears What are the various

    What are the various Calls in Arrears? Describe it.

    		•
  • Q : Human relation discuss the limitations

    discuss the limitations of human relations approaches to management

    		•
  • Q : Provisional Entries Describe

    Describe Provisional Entries?

    		•