📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    One Click Can Change Your Exam Journey—Do It Before It Ends! ⏰

    Question

    Which of the following is/are examples of capital

    expenditure?
    A Purchases of land & buildings by the property dealer Correct Answer Incorrect Answer
    B Purchases of machinery by machinery dealer Correct Answer Incorrect Answer
    C Expenses incurred for getting patents Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Capital expenditure typically includes expenses related to acquiring or improving long-term assets, such as land, buildings, machinery, or equipment. Expenses incurred for obtaining patents are considered capital expenditures because patents are long-term assets that provide benefits over an extended period.

    Practice Next
    More Capital Budgeting Questions

    Relevant for Exams:

    ask-question