Which of these is most likely to be regarded as a capital expenditure rather than an operating expense?
A) Property taxes
B) Trash removal
C) Insurance payments
D) Roof replacement

Question

Quizplus · Accepted Answer

Capital expenditures are generally one-time investments that add value to a business, such as new equipment or building improvements. Roof replacement would fall under this category as it is a significant, long-term investment that adds value to the property. Property taxes, trash removal, and insurance payments are examples of operating expenses, which are necessary for day-to-day business operations but do not add long-term value.

Which of These Is Most Likely to Be Regarded as a Capital