A reasonable amount means that the expenditures cannot be excessive, even if the amount is motivated by profit. Highway speeding tickets may be deducted if speeding is committed as part of official activity. FALSE.
Expenditures are the total cost of purchasing a product or service. For example, a company purchases an estimated $10 million worth of equipment with five-year service life. This is classified as capital expenditure of $10 million. Not all costs are costs. Some examples of expenses are rent, utilities, and wages.
Expenses generate income and support the day-to-day operations of your business. Capital expenditures are used to increase the long-term value of a company. Cost is not necessarily the same as cost because cost represents a decrease in the value of an asset whereas cost simply represents the acquisition of the asset. Thus, costs are applied at a specific point in time, whereas costs can be incurred over a much longer period of time.
Learn more about expenditures here:
https://brainly.com/question/935872
#SPJ4
