GK
ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Project Expansion
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Project Generation
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Research and Development Project
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All of the above
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Detailed explanation-1: -Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software. CapEx can be a one-time expenditure (i.e. buying land) or accumulated over time as part of a project (i.e. developing a building on that land).
Detailed explanation-2: -Explanation: Capital expenditure or capital expense is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Wages paid on the installation of machinery is treated as a capital expenditure.
Detailed explanation-3: -An expenditure which either creates an asset (e.g., School building) or reduces a liability (e.g., repayment of loan) is called capital expenditure. (A) Capital expenditure which leads to creation of assets are (a) expenditure on purchase of assets like land, buildings, machinery and construction of roads, canals, etc.