Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is considered a capital expenditure?

Salaries paid to administrative staff

Purchase of new machinery for production

Purchase of office supplies for daily use

Payment of monthly utility bills

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Verified step by step guidance

Understand the concept of capital expenditure: Capital expenditures are funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. These expenditures are typically long-term investments that improve the company's capacity or efficiency.

Analyze each option provided in the problem: Salaries paid to administrative staff, purchase of new machinery for production, purchase of office supplies for daily use, and payment of monthly utility bills.

Determine whether each option qualifies as a capital expenditure: Salaries, office supplies, and utility bills are recurring expenses and are considered operating expenses, not capital expenditures. They do not contribute to acquiring or improving long-term assets.

Focus on the purchase of new machinery for production: This option involves acquiring a physical asset that will be used for production over a long period. It is a long-term investment and fits the definition of a capital expenditure.

Conclude that the purchase of new machinery for production is the correct answer, as it represents a capital expenditure aimed at improving the company's production capacity.