Which of the following is a capital expenditure? • Capital expenditur
A. Advertisement expenditure
B. Salary paid
C. Wages paid for building construction
D. Withdrawal of money for personal expenses
Right Answer is: C
• Capital expenditure: It refer to funds that are used by a firm for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the firm.
• Long-term assets are usually physical, fixed and non-consumable assets such as property, infrastructure or equipments and that have a useful life of more than one accounting period.