Asked by Erinn Whitlock on May 10, 2024
Verified
Budgeting for items such as equipment and furniture would be considered:
A) capital expenses.
B) capital expenditures.
C) general expenses.
D) general expenditures.
Capital Expenditures
Original cost of an asset as well as additions or enlargements, extraordinary repairs, and betterments.
Budgeting
The process of creating a plan to spend your money, allocating future income towards expenses, savings, and debt repayment.
Equipment
Tangible property used in operations, such as machinery or computers, which has a useful life beyond a single reporting period.
- Understand the accounting treatments for capital expenditures including equipment and furniture.
Verified Answer
TA
Torin AschleMay 17, 2024
Final Answer :
B
Explanation :
Capital expenditures refer to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, technology, or equipment. Budgeting for items such as equipment and furniture falls under this category because these are long-term investments in the business.
Learning Objectives
- Understand the accounting treatments for capital expenditures including equipment and furniture.