What are funds invested in long-lived assets, such as land, buildings, machinery, and equipment?
A) operating expenses
B) production costs
C) manufacturing expenses
D) capital expenditures

Question

Quizplus · Accepted Answer

Capital expenditures refer to funds that are invested in long-lived assets, such as land, buildings, machinery, and equipment. These assets are used to generate income over a prolonged period, and their purchase is viewed as an investment rather than an expense. Operating expenses, production costs, and manufacturing expenses, on the other hand, are typically associated with ongoing business operations and do not involve the purchase of long-lived assets.

What Are Funds Invested in Long-Lived Assets, Such as Land