GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is capital expenditure?
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Cost of advertisement
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Purchase of machine oil
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Purchase of raw material
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Purchase of a delivery van
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Explanation:
Detailed explanation-1: -Therefore, in the given question purchase of delivery van is a capital expenditure.
Detailed explanation-2: -Capital purchases, also known as capital expenditure or capex, are funds used by a business to make a substantial investment in long-term fixed assets. This can include purchasing machinery and equipment, land, buildings or other infrastructure, and furniture and fixtures.
Detailed explanation-3: -Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.
There is 1 question to complete.