Sespi is a manufacturer of aerated drinks such as colas and other beverages.The finance department is planning to table a capital expenditure budget for the upcoming year.Which of the following items might be accounted for under this budget?
A) stationery items for offices
B) a new bottling plant
C) employee payroll
D) dividend payments for shareholders

Question

Quizplus · Accepted Answer

A capital expenditure is a long-term investment that is expected to benefit the company for a number of years. Stationery items, employee payroll, and dividend payments are not considered capital expenditures. A new bottling plant, on the other hand, is a significant investment that can greatly impact the company's future profitability and growth.

Sespi Is a Manufacturer of Aerated Drinks Such as Colas