Answer:
a. Purchase price. This is capital expenditure.
b. Ordinary recurring repairs to keep the machinery in good working order. This is revenue expenditure
c. Lubrication before machinery is placed in service. This is revenue expenditure.
d. Periodic lubrication after machinery is placed in service. This is revenue expenditure.
e. Major overhaul to extend useful life by three years. This is capital expenditure.
f. Sales tax paid on the purchase price. This is capital expenditure. However, if sales tax is refundable than this will neither be classified as capital expense nor revenue expense.
g. Transportation and insurance while machinery is in transit from seller to buyer. This is capital expenditure.
h. Installation. This is capital expenditure.
i. Training of personnel for initial operation of the machinery. This is revenue expenditure.
Explanation:
The costs that are charge as expense in profit and loss statement in the period in which thay are incurred are known as revenue expense.
The costs that are capitalized initially and expensed out as benifits, are derived from it, are classified as capital expenditure.
Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
<h3>
What is the return on investment?</h3>
- A ratio between net income and investment is known as return on investment or return on costs.
- A high ROI indicates that the returns on the investment outweigh the costs.
- ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
- The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
- It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
- Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
- Anything that has the potential to provide positive economic value qualifies.
- The ownership value that can be turned into cash is represented by assets.
Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.
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Answer:
the answer is C. a legal entity of people who share a common mission.
Answer: $251758.53
Explanation:
Based on the information given in the question,
Total lease liability = $280,000
Then, the balance in the lease payable account when the first lease payment takes place on January 1, 2021 will be:
= $280,000 - $16,427
= $263573
The, the interest that is included in the lease payment that's made on April 1, 2021 Will be:
= $263573 x 7% x 1/4
= $4612.53
Then, the principal amount that's included in the lease payment made on April 1, 2021 will be:
= $16,427 - $4612.53
= $11814.47
Therefore, the balance in the lease payable account after the April 1, 2021, lease payment will be:
= $263573 - $11814.47
= $251758.53
Gathering information is the right answer C