acquiring capital assets for future use is one type of capital expenditure proposal. true or false

Q: Capital budgeting is the decision making process used in the acquisition of long term physical…

A: It is a decision making process which is used by the firm about the acquisition of long term…

Q: How can we determine the period necessary to recover both the capitalinvestment and the cost of…

A: The Payback period (PBP) determines how long it would take a company to recover the investment. PBP…

Q: The principal difference between two concepts of capital maintenance is the treatment of the effects…

A: CAPITAL: Capital refers to the assets used for the production of goods and services. A typical…

Q: Why is capital cost allowance used instead of depreciation expense in capital budgeting?

A: Capital cost allowance: is an annual deduction which can be claimed on depreciable asset while…

Q: Project cost are capitalized  but period costs are expensed

A: Project costs are costs incurred to build assets of enduring nature.

Q: How capital expenditure(investment) analysis helps in making long term decision to determine…

A: Capital Expenditure Decisions include those decisions which require deciding on the purchase of…

Q: what is the importance of cash flow management when evaluating proposals for capital expenditure?

A: The cash flow management is related to management of inflows of cash and outflows of cash with…

Q: The importance of cash flow management when evaluating proposals for capital expenditure?

A: All investments in capital assets are expected to earn a return, which is evaluated by comparing the…

Q: What are the after effects (both short term and long term) of capitalizing the cable costs of…

A: Capital expenditures (CapEx) are cash outlays made by a company to purchase, improve, and maintain…

Q: NPV and IRR are two DCF methods for analysing a proposed capital investment. Briefly explain how…

A: The characteristics and returns, including the risk of publicly traded investments like stocks,…

Q: What are the major reasons to request a capital project?

A: Expansion and Growth: Companies often undertake capital projects to facilitate expansion and growth…

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: How can you explain working capital management? Explain different policies/approaches to manage…

A: The working capital is the capital that is used in the business for successful running of day to day…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

A:

Q: Explain this concept: “The cost of capital depends primarily on the use of the funds, not the…

A: A company’s cost of capital can be said to be that minimum rate of return that the company or the…

Q: briefly the concept of the capital components of the capital adequacy framework and provide an…

A: The capital adequacy ratio (CAR) is a ratio used to know the relationship between the bank's…

Q: How can the calculation of Net Income Attributable be done to a new project?

A: The question is based on the concept of Net Income Attributable for new projects.

Q: Which of the following is a criterion for a capital expenditure? a.It should increase the…

A: Capital Expenditure: It is the amount that a company spends on the development of machinery,…

Q: Define non operating investment assets.

A: A non-operating investment asset is a class of assets that are not essential to the ongoing…

Q: Which of the following items is irrelevant in determining the relevant cost of acquisition in…

A: Capital budgeting: capital budgeting is a decision making method done by management accountants in…

Q: How can we determine after-tax cash flows for an investmenta project with only operating and…

A: Discount rate is the weighted average cost of capital (WACC) which is used in the project.  WACC is…

Q: 2. Which of the following best explains the meaning of the term 'capital expenditure'. Capital…

A: Capital expenditure is the long term expenditure of the company.

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: Why must the Engineers consider the effective use of fixed capital assets?

A: Engineer indulge in numerous process of decision-making such as manufacturing, financing, and…

Q: What is a capital asset?  Why do we care about the treatment of assets as either capital or…

A: Capital assets is an assets which are generally not meant for sale but for investment purpose which…

Q: The available capital funds are to be carefully allocated among competing projects by careful…

A: The company should invest the capital funds in such a manner that provides the maximum profit to the…

Q: How are capital expenditures made to improve the quality of a capital asset accounted for? Would the…

A: Capital expenditure funds are funds used by a company to acquire or upgrade physical assets such as…

Q: Which of the following statements is TRUE regarding capitalization of interest? O Interest cost…

A: Capitalization of interest is an accounting method in which the interest expenses incurred during a…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: Is it ever appropriate or acceptable to use the payback method of evaluating capital investment…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Determine the period necessary to recover both the capital investment and the cost of funds required…

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Explain Initial Capital Contributions with example?

A: Initial contributions are generally made by members to take part in the company's interests. Many…

Q: Real property held for investment is a capital asset. True or false

A: Real Estate Property Held for Investment is A capital Assets.   Real estate property held for…

Q: The amount to be capitalized should be:

A: Answer:   Option a.

Q: Capital expenditure projects may be classified in all the following types EXCEPT ____.   a.…

A: The practice of limiting the number of fresh investments or ventures pursued by a corporation as…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.