Question 2

Which one of the following is not an example of capital expenditure motives?

1. First National Bank is evaluating the start-up of a new branch.
2. SAA
3. Boston College has to buy stationery for one of their lecturers.
4. KPMG is considering upgrading its 184 personal computers.

Question

Mthabisenikwekwileidn Mthabisenikwekwileidn

24-07-2024
Business

Answered

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Question 2

Which one of the following is not an example of capital expenditure motives?

1. First National Bank is evaluating the start-up of a new branch.
2. SAA
3. Boston College has to buy stationery for one of their lecturers.
4. KPMG is considering upgrading its 184 personal computers.

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-24T11:32:00-04:00

Final answer:

Capital expenditure motives involve long-term investments for future benefits. Boston College buying stationery is not a capital expenditure motive.

Explanation:

Capital expenditure motives refer to the reasons why businesses invest in long-term assets that are expected to generate benefits over time. The example of Boston College buying stationery for a lecturer is not an example of a capital expenditure motive as it involves a short-term and consumable item that does not provide long-term benefits like the other options.

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