Bergman chapter8 - Chris Bergman Principles of Finance...

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Chris Bergman Principles of Finance SECTION 25049 OPC 004 November 3, 2008 christopherbergman@g.austincc.edu Chapter 8 1) a. Operating expenditure b. Operating expenditure c. Capital expenditure d. Capital expenditure e. Capital expenditure f. Capital expenditure g. Capital expenditure h. Operating expenditure (You have the majority correct but look at the logic below on the ones you missed) a. Operating expenditure—ease expires within one year b. Capital expenditure—patent rights exist for many years c. Capital expenditure—research and development benefits last many years d. Operating expenditure—marketable securities mature in under one year e. Capital expenditure—machine will last over one year f. Capital expenditure—building tool will last over one year g. Capital expenditure—building will last for more than one year h. Operating expenditure—market changes require obtaining another report within a year 2) A. a. Mutually exclusive b. Unlimited funds c. ranking is required
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Bergman chapter8 - Chris Bergman Principles of Finance...

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