A $60,000 outlay for a new machine with a usable life of 15 years is called ________.
A) capital expenditure
B) financing expenditure
C) replacement expenditure
D) operating expenditure

Question

Quizplus · Accepted Answer

A $60,000 outlay for a new machine with a usable life of 15 years is a capital expenditure because it is a long-term investment in a fixed asset that is expected to generate benefits beyond the current fiscal year.

A $60,000 Outlay for a New Machine with a Usable