Explain when a cost should be recorded as a capital expenditure rather than an expense
What will be an ideal response?
A capital expenditure is an expenditure that will be recorded as an asset because it represents something of future value to the business. Capital expenditures involve buying an asset or extending its useful life or operating efficiency. An expense, on the other hand, is a normal, routine cost that has no benefits that extend beyond the current accounting period. It should be treated as an expense in the period incurred.
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Which of the following statements regarding a disability income rider is NOT correct?
A) A disability income rider is a form of health insurance. B) The only way to provide disability benefits in a life insurance policy is through a disability income rider. C) A disability income rider does not provide benefits for partial or temporary disability. D) Most disability income riders do not cover disabilities that develop after age 60 or 65."
Mary Conti, a sales manager at National Computer Training, wants to evaluate the performance of her sales force in the New England territory. Which of the following would Mary most likely use?
A) SWOT analysis B) breakeven analysis C) sales forecast D) expense reports E) call plan