A(n) ____ is a cash outlay that is expected to generate a flow of future cash benefits lasting longer than 1 year.
A) depreciation charge
B) operating expenditure
C) capital expenditure
D) capital gain

Question

Quizplus · Accepted Answer

A capital expenditure is a cash outlay that is expected to generate a flow of future cash benefits lasting longer than 1 year. Depreciation charge is not a cash outlay, it is a non-cash expense that reflects the reduction in value of an asset over time. Operating expenditure is a cash outlay that generates future cash benefits, but these benefits are typically short-term and not lasting longer than 1 year. Capital gain refers to an increase in the value of an investment or asset and is not related to cash outlays.

A(n) ____ Is a Cash Outlay That Is Expected to Generate