Which of the following would not be classified as a capital expenditure for decision-making purposes?

Question

Quizplus · Accepted Answer

A capital expenditure is an investment in a long-term asset that has a useful life of more than one year and is used in the production of goods or services. Purchasing a building, investing in a management training program, and developing a major advertising campaign are all examples of capital expenditures. However, purchasing Treasury bills is not an investment in a long-term asset that is used in the production of goods or services, so it would not be classified as a capital expenditure for decision-making purposes.

Which of the Following Would Not Be Classified as a Capital