Which of these is most likely to be regarded as a capital expenditure rather than an operating expense?
A)Replacement of broken windows.
B)Landscape expense.
C)Pressure washing of walls.
D)Upgrade of insulation.

Question

Quizplus · Accepted Answer

Upgrading insulation is a significant improvement to the structure of a building that would provide long-term benefits. It is considered a capital expenditure that increases the value of the asset and is depreciated over time. The other options (replacement of broken windows, landscape expense, pressure washing of walls) are typically considered operating expenses as they are routine repairs and maintenance to keep the property in good condition.

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