Capital expenditures:
A) are easily reversible
B) are forms of operating expenditures
C) Affect long-run future profitability
D) Involve only money,not machinery
E) none of the above

Question

Quizplus · Accepted Answer

Capital expenditures involve investing in physical assets such as property, equipment, or machinery that will benefit the company over a long period. These expenditures have a significant impact on the company's future profitability, and they are not easily reversible. Therefore, option C is the best choice. Options A, B, D, and E are incorrect.

Capital Expenditures