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

Q: Which of the following is an advantage of using the payback period method for project selection?…

A: The objective of the question is to identify the advantage of using the payback period method for…

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: Explain what is meant by future deductible amounts. Why is it important to understand this concept?

A: Future deductible amounts refer to the expenses that a business incurs in the current period but…

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: Which of the following cash flows should not be considered when evaluating a project? Changes in…

A: Following cashflows should not be considered when evaluating a project-

Q: Discuss the unresolved academic issues in capital structure decisions and make suggestions for…

A: Capital structure refers to the way in which a company finances its operations and growth through a…

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: 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: Which of the following items are required to analyze a capital expenditure? (Select all that apply.)…

A: To analyze a capital expenditure, the primary focus is to understand the cost of the expenditure and…

Q: Finance is the efficient acquisition, allocation, and utilization of funds. Briefly discuss each…

A: Finance is all about the acquisition of funds in the most optimal manner, then allocating the…

Q: What is a donated capital and how it is accounted?

A: Donated capital is defined as assets given as gift to the entity.

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: 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: 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: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

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: What is the difference between VaR as it has been traditionally measured and stressed VaR? Explain…

A: A definition of value at risk is as follows: Value at Risk (VaR) is a metric that estimates the size…

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: Explain why the cost of capital is measured on an after-tax basis why is use of a weighted average…

A: This question consists of two subquestions i.e.  (a) Explain why the cost of capital is measured on…

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: Relate the idea of cost of capital to the opportunity cost concept. Is the cost of capital the…

A: The total cost of financing current projects (or projects under consideration) will be the financial…

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: where i have to put in the balance sheet the account "Development expenditure (capitalised)"?

A: When an expense is of the nature, that it is bound to benefit for more than one accounting period,…

Q: An investment property is considered to generate cash flows that are?

A: Investment property can be defined as the property consisting of land or building which is not…

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…

Q: When and under what conditions the cross over rate will be used will be an essential consideration…

A: Introduction: The process through which the corporation decides on the project investments that will…

Q: Explain the difficulties for determining the cost of capital in the short term decision making.

A: Introduction: Capital structure relates to financing of the overall activities and development of a…

Q: Capital investment decisions involve investments in long-term operational assets.  TRUE OR FALSE?

A: Capital investment decision: These decisions are made by the management to utilise the capital funds…

Q: Explain Capital Budgeting? Mention the decision-making process of all capital budgeting techniques.

A: Capital budgeting refers to the process of making investment decisions in capital expenditure.…

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.