A capital expenditure results in a debit to a(n)

Name: A capital expenditure results in a debit to a(n)
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Question

Quizplus · Accepted Answer

A capital expenditure is an investment in a long-term asset, such as property, plant, and equipment, that will provide future benefits over several accounting periods. Therefore, it is recorded as a debit to an asset account. It is not an expense or revenue, which are related to the company's ongoing operations. It also does not affect stockholders' equity directly.

A Capital Expenditure Results in a Debit to A(n)