Match the descriptions with their terms:
-Costs associated with the purchase of plant assets.
A) Plant assets
B) Depreciation
C) Carrying amount
D) Residual value
E) Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures

Question

Quizplus · Accepted Answer

Capital expenditures refer to the costs associated with the purchase of plant assets. These are long-term investments in the business, such as buildings, machines, and equipment, which are capitalized on the balance sheet and then depreciated over their useful lives.

Match the Descriptions with Their Terms