A characteristic of capital expenditures is that the expenditures occur frequently during the period of ownership.

Question

Quizplus · Accepted Answer

Capital expenditures are typically one-time investments made at the beginning of the period of ownership, rather than frequent expenses. They are investments in long-term assets that are expected to provide benefits over many years, such as the purchase of new equipment or the construction of a new building. While some ongoing maintenance expenses may be required to keep these assets in good working order, they are not considered capital expenditures.

A Characteristic of Capital Expenditures Is That the Expenditures Occur