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.

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