Which of the following enhances the earning capacity of an asset?
A. Reduction in operating costs
B. Increase in working capacity of an asset
C. Replacing damage parts of an asset
D. Both 'b' and 'c'
Answer: Option D
Solution(By Examveda Team)
Increase in working capacity of an asset and Replacing damage parts of an asset enhances the earning capacity of an asset.This Question Belongs to Commerce >> Accounting
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Enhancement of earning capacity of an asset :- Capital expenditure
Replacement of damaged parts of an asset :- Revenue Expenditure
This contradict.
Anybody????