Question

    At the end of the accounting year the capital

    expenditures are shown in the:
    A assets side of the Balance Sheet. Correct Answer Incorrect Answer
    B liabilities side of the Balance Sheet. Correct Answer Incorrect Answer
    C debit side of the Profit and Loss A/c. Correct Answer Incorrect Answer
    D credit side of the Profit and Loss A/c. Correct Answer Incorrect Answer

    Solution

    Capital expenditures, which represent investments in long-term assets that provide future benefits to the company, are shown on the assets side of the Balance Sheet. This is because they increase the value of the company's assets and are expected to generate returns or benefits over multiple accounting periods.

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