Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Arnold opens a cake decorating company. He purchases decorating tools and ingredients. These are both examples of which type of expenditure?

A. capital
B. labor
C. entrepreneurial ability
D. land

Sagot :

GinnyAnswer

Final answer:

Capital expenditure includes long-term asset purchases like tools and ingredients for Arnold's cake decorating business.


Explanation:

Capital expenditure refers to the spending on assets that will provide benefits over an extended period. In the case of Arnold purchasing decorating tools and ingredients for his cake decorating company, both fall under the category of capital expenditures as they are long-term assets that will help generate future profits for his business.

  • Examples of capital expenditures include buying machinery, equipment, buildings, or other long-lasting assets that contribute to the company's operations and growth.
  • These expenditures are different from labor costs, which are associated with the workforce's wages and do not involve acquiring long-term assets.
  • Understanding the distinction between different types of expenditures can help entrepreneurs make informed financial decisions for their businesses.

Learn more about Capital Expenditure in Business here:

https://brainly.com/question/32469351


Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.