Which of the following is not a capital expenditure?

1. Annual maintenance expenditures on a fleet of delivery trucks.

2. Sales tax paid in conjunction with the purchase of new machinery.

3. Installation of elevators to replace escalators

4.An amount paid to acquire a patent with a remaining life of only three years.

Which of the following is not a capital expenditure?

1. Annual maintenance expenditures on a fleet of delivery trucks.

2. Sales tax paid in conjunction with the purchase of new machinery.

3. Installation of elevators to replace escalators

4.An amount paid to acquire a patent with a remaining life of only three years.

If a company sells a tangible asset before it's useful life is over, it will:

1. Receive more cash if it uses the Straight Line Method of depreciation.

2. Receive more cash if it uses the Double Declining Balance Method of depreciation.

3. Receive more cash if it uses the Units of Output Method of depreciation.

4.Receive the same amount of cash no matter which depreciation method it uses.

The net realizable value of Accounts Receivable represents the company's best estimate of what it expects to collect on it's accounts receivable. It equals the total Accounts Receivable less an allowance for doubtful accounts.

True

False