MCQ IN COMPUTER SCIENCE & ENGINEERING

COMPUTER SCIENCE AND ENGINEERING

CLOUD COMPUTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Purchasing an asset (factory, computer system, company car) is considered a ____
A
capital expenditure
B
operational expenditure
C
petty cash
D
floating fund
Explanation: 

Detailed explanation-1: -Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.

Detailed explanation-2: -Capital expenditure examples Acquiring, or buying, a fixed tangible asset, such as a building, or intangible asset, such as a patent or license. Upgrading an existing asset to expand its capacity or capability, such as a computer network or major equipment.

Detailed explanation-3: -Capital assets are also sometimes referred to as fixed assets. They can be equipment, machinery, computers, or cars, or anything else that has quite a high cost and is going to be used in your business for more than about a year.

Detailed explanation-4: -Capital expenditure (CapEx) is money that is spent to acquire, repair, update, or improve a fixed company asset, such as a building, business, or equipment. A CapEx is different from an everyday business, which falls under the operating expense category.

There is 1 question to complete.