Which of the following would be considered a capital expenditure?
A)Oil change on a truck
B)Repair fender damage during shipping
C)Cost of custom paint job on truck at time of purchase
D)Repair of radiator

Question

Quizplus · Accepted Answer

A capital expenditure is a long-term investment in a company's infrastructure or fixed assets that are expected to generate revenue over multiple periods. The cost of a custom paint job on a truck at the time of its purchase would be considered a capital expenditure. The other options are considered a repair or maintenance expense, which is typically a short-term expense that doesn't have a long-term impact on the company's assets.

Which of the Following Would Be Considered a Capital Expenditure