Which of the following is an example of a capital expenditure?
A) cleaning the carpet in the front room
B) tune-up for a company truck
C) replacing an engine in a company car
D) replacing all burned-out light bulbs in the factory

Question

Quizplus · Accepted Answer

Capital expenditures are long-term investments made by a company to improve its business operations or acquire new assets. Capital expenditures are generally larger in size and have a longer lifespan, such as replacing an engine in a company car. Cleaning the carpet in the front room (A) and replacing all burned-out light bulbs in the factory (D) are examples of operating expenditures while a tune-up for a company truck (B) is a maintenance expenditure.

Which of the Following Is an Example of a Capital