The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as -

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Capital expenditure refers to the funds used by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. This type of spending is made to increase the scope of operations or add economic benefits to the business in the future, beyond the current accounting period.

The Out Flow of Funds to Acquire an Asset That