Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our 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


Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.