QuestionDecember 15, 2025

Question 2 Which of the following would not be classified as a capital expenditure for decision-making purposes? bigcirc investment in a management training program & bigcirc development of a major advertising campaign & bigcirc purchase of 90-day Treasury Bills & bigcirc purchase of a building & Question 3 The call feature of a long-term bond allows the issuer to replace a high coupon bond with one with a lower coupon bond all answers are correct states the call price is an optional retirement provision

Question 2 Which of the following would not be classified as a capital expenditure for decision-making purposes? bigcirc investment in a management training program & bigcirc development of a major advertising campaign & bigcirc purchase of 90-day Treasury Bills & bigcirc purchase of a building & Question 3 The call feature of a long-term bond allows the issuer to replace a high coupon bond with one with a lower coupon bond all answers are correct states the call price is an optional retirement provision
Question 2
Which of the following would not be classified as a capital expenditure for decision-making purposes?

 
bigcirc investment in a management training program & 
 
bigcirc development of a major advertising campaign & 
 
bigcirc purchase of 90-day Treasury Bills & 
 
bigcirc purchase of a building & 
 

Question 3
The call feature of a long-term bond
allows the issuer to replace a high coupon bond with one with a lower coupon bond
all answers are correct
states the call price
is an optional retirement provision

Solution
4.3(372 votes)

Answer

Q2: purchase of 90-day Treasury Bills ### Q3: all answers are correct Explanation 1. Identify non-capital expenditure Capital expenditure = spending on assets providing benefits over multiple periods. Training programs, advertising campaigns, and building purchases are long-term benefits; 90-day Treasury Bills are short-term investments, not capital expenditures. 2. Identify correct description of call feature Call feature allows issuer to redeem bonds early, often replacing high coupon bonds with lower coupon bonds, states call price, and is an optional retirement provision — all given statements are correct.

Explanation

1. Identify non-capital expenditure <br /> Capital expenditure = spending on assets providing benefits over multiple periods. Training programs, advertising campaigns, and building purchases are long-term benefits; 90-day Treasury Bills are short-term investments, not capital expenditures. <br />2. Identify correct description of call feature <br /> Call feature allows issuer to redeem bonds early, often replacing high coupon bonds with lower coupon bonds, states call price, and is an optional retirement provision — all given statements are correct.
Click to rate:

Similar Questions