Final answer:
It is true that capital purchases cannot usually be fully claimed as an expense in the year they are made; they must be depreciated over time. The colonists' objection to taxation without representation is also true. However, the necessary and proper clause has generally expanded rather than limited the power of the federal government.
Step-by-step explanation:
Capital purchases cannot usually be fully claimed as an expense in the year in which the purchase occurred. This information is true. When a company makes a capital purchase, such as equipment or buildings, it must capitalize the expense, spreading the cost over the useful life of the asset through depreciation. This accounting practice matches the cost of the asset with the revenue it helps to generate over time.
The principle of spreading out the cost is fundamental in accrual accounting and adheres to the matching principle, ensuring that financial statements accurately reflect a company's financial position. Immediate expensing of large capital purchases would distort the financial statements and not provide a true picture of the long-term financial health and operations of a business.
Regarding Exercise 7.3.1, the statement that the colonists did not necessarily object to the principle of taxation but rather how the tax money would be applied is true. They were concerned with 'taxation without representation'—a lack of say in how their taxes were used by the British government.
For Exercise 9.3.1, the idea that the necessary and proper clause has limited the power of the national government is false; it has often been used to expand federal government powers under the pretext of carrying out its delegated duties.