Assume that a company allocates $5,000 toward the purchase of new office furniture and computer equipment. In addition, $600 in idle cash is put in a savings account. The firm's total investment expenditures amount to $5,600.

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Investment expenditures typically refer to spending on capital assets like machinery, buildings, and equipment. The $600 placed in a savings account is considered a financial investment, not an investment expenditure in the context of business accounting. Therefore, the firm's total investment expenditures amount to $5,000, not $5,600.

Assume That a Company Allocates $5,000 Toward the Purchase of New