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Question 2

Which one of the following is not an example of capital expenditure motives?

1. First National Bank is evaluating the start-up of a new branch.
2. SAA
3. Boston College has to buy stationery for one of their lecturers.
4. KPMG is considering upgrading its 184 personal computers.



Answer :

GinnyAnswer

Final answer:

Capital expenditure motives involve long-term investments for future benefits. Boston College buying stationery is not a capital expenditure motive.


Explanation:

Capital expenditure motives refer to the reasons why businesses invest in long-term assets that are expected to generate benefits over time. The example of Boston College buying stationery for a lecturer is not an example of a capital expenditure motive as it involves a short-term and consumable item that does not provide long-term benefits like the other options.


Learn more about Capital Expenditure Motives here:

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