Why should the capital expenditures be capitalized?

Q: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

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: Define the term capitalized cost?

A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…

Q: How changes in capital structure effect WACC?

A: The two types of borrowing available in capital markets are equity and debt. The concept of capital…

Q: What is the goal of capital structure management?

A: In simple words, capital structure management refers to the process under which the managers take…

Q: Define thoroughly what is Capital and give its composition

A: Capital is the amount of cash or any other assets that are being invested in the business. Capital…

Q: What are capital resources?

A: Capital resources are goods produced and used to make other goods and services. Capital resources…

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 we determine the net change in working capital requirements?

A: Working capital:Working capital refers to the excess amount of current assets over its current…

Q: Explain this concept: “The cost of capital depends primarily on the use of the funds, not the…

A: A company’s cost of capital can be said to be that minimum rate of return that the company or the…

Q: Define capital expenditure

A:

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: Who are the providers (savers) and users (borrowers) of capital?

A: The providers are known as savers and the users are known ad borrowers of capital are given below…

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: 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: acroprudential measures overlap?

A: Assessing their effectiveness is complicated by selection bias; countries which change their…

Q: What is the difference between capital expenditure and revenue expenditure? Give an example of each.

A:

Q: What are the common internal controls in place for capital expenditure cycle? with explanations

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: Is it ever appropriate or acceptable to use the payback method of evaluating capital investment…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What does Capital Recovery (Ownership) Cost?

A: Capital recovery cost It is an equivalent annual amount each year an asset must earn to recover…

Q: Define capital gain (loss)

A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…

Q: What does the empirical evidence say about capital structure theory? What are the implications…

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

Q: What is Capital Fund? How is it calculated?

A: Capital Fund: It is the Excess of assets over liabilities for non profit organisations is termed as…

Q: How is surplus value transformed into capital, and how is this related to the process of capital…

A: Surplus value refers to the difference between the sale proceeds and cost of product.

Q: The amount to be capitalized should be:

A: Answer:   Option a.

Q: Capital investment decisions are not affected by:

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: What are the Capital Costs?

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: What is capital structure and why it is important?

A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…

Q: What is capital assets?

A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…

Q: What is an example or scenarios of Capital Allocation Line (CAL)?

A:

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: What is meant by capital structure?

A: CAPITAL STRUCTURE IS THE MIX OF THE LONG-TERM SOURCES OF FUNDS USED BY A FIRM . IT IS MADE UP OF…

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

A: Capital expenditure (or capex) refers to those expenditures that are incurred by a company for…

Q: Cost of Capital depends on its components and cost associated with its components’. Justify the…

A: The cost of capital repersent of company repersent its cost of financing. It referes to minimum rate…

Q: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

Q: What is capitalization and what are its capabilities?

A: Capitalization may likewise state as the idea of changing over some thought into a business or…

Q: How much is the legal capital?

A: Legal capital refers to the par value/stated value of the shares issued.

Q: Define the term capitalize.

A: Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in…

Q: how do you find the owner's capital?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: How do taxes affect the target capital structure?

A: One of the key issues that overseers of corporations should take into consideration once designing…

Q: What is a simple capital structure?

A: Capital structure Capital structure refers to a combination or mix of equity and debt in order to…

Q: When calculating WACC, what capital is excluded and why?

A: when the company has multiple sources of finance in the company, then it is required to calculate…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.