Which of the following is a reason that organizations invest in capital assets?
A)Expectation that they will generate a future return
B)Expectation that they will be sold to customers
C)Expectation that they can be depreciated
D)Expectation that the capital asset can be held for resale

Question

Quizplus · Accepted Answer

Organizations invest in capital assets with the expectation that they will generate a future return. This return can come in the form of increased efficiency, productivity, or profits as a result of owning and using the asset. The other options (B, C, D) do not necessarily reflect the primary reasons for investing in capital assets.

Which of the Following Is a Reason That Organizations Invest