A capital expenditure is all of the following except
A) expected to produce benefits over a period of time greater than one year.
B) an outlay for current asset expansion.
C) commonly used to expand the level of operations.
D) an outlay made for the earning assets of the firm.

Question

Quizplus · Accepted Answer

A capital expenditure is not necessarily an outlay for current asset expansion, as it can also be used for the acquisition of long-term assets or investments that will provide benefits for an extended period of time. The other options (A, C, D) are all characteristics of a capital expenditure.

A Capital Expenditure Is All of the Following Except