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The purchase of a computer by a person for household use would be counted in what category?

1) Personal expenses
2) Business expenses
3) Investment expenses
4) Entertainment expenses

1 Answer

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Final answer:

The purchase of a computer for household use is categorized as a personal expense. While it can be used for entertainment, personal expenses cover the wide range of services and products for personal use.

Step-by-step explanation:

The purchase of a computer by a person for household use would principally be counted in the category of personal expenses. Personal expenses typically cover a broad range of products and services used for individual or household purposes. Even though a household computer could potentially be used for activities that fall under other expense categories, such as entertainment (2 hours per day on average), the primary function is often related to personal use, including office work at home, research, communication, personal finances, and education. Categories like business expenses are dedicated to costs strictly for business operations, and investment expenses are associated with spending on new capital goods, which typically does not include household items. Moreover, the computer could certainly be used for entertainment, but this is generally not the primary reason for its purchase as a household item.

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