Which of the following would be an example of a capital equipment purchase for a manufacturer of stained glass windows?
A) lead solder to hold the pieces of glass together
B) the designs that are used for each project
C) the wood used to build frames for the windows
D) the building which houses the workers
E) gas for the company's delivery van.

Question

Quizplus · Accepted Answer

The building which houses the workers would be a capital equipment purchase for a manufacturer of stained glass windows, as it is a long-term investment in a fixed asset that is essential to the business operations. The other options listed are either supplies or expenses, not capital equipment.

Which of the Following Would Be an Example of a Capital