Question

A single piece of equipment that exceeds a predetermined amount (e.g., $5,000) and has a life span of longer than a predetermined period (e.g., 1 year) would best be called which of the following?

A) Capital equipment

B) Disposable equipment

C) Consumable equipment

D) Routine equipment

Answer 1

Capital equipment refers to durable goods and machinery used in the production of other goods and services that exceed a certain price and have a longer lifespan.

Step-by-step explanation:

The single piece of equipment that exceeds a predetermined amount (e.g., $5,000) and has a lifespan longer than a predetermined period (e.g., 1 year) is best called capital equipment. Capital equipment refers to durable goods and machinery that are used in the production of other goods and services. It is usually a significant investment that is expected to last for a long time.