As the Toronto-based Four Seasons hotel chain remodels an existing hotel in Mumbai to bring it to the five-star hotel's exacting standards,it is building a magnificent revolving restaurant overlooking the Arabian Sea.The restaurant structure is an example of which of the following?

Question

Quizplus · Accepted Answer

The construction of a new revolving restaurant is a capital expenditure, as it involves a significant investment in a long-term asset that will generate revenue for the hotel over many years. It is not an operating cost, as it is not related to the day-to-day operations of the hotel. It is also not a material cost or account receivable, as these terms refer to different types of expenses and assets.

As the Toronto-Based Four Seasons Hotel Chain Remodels an Existing