A capital expenditure is all of the following EXCEPT
A) an outlay made for the earning assets of the firm.
B) expected to produce benefits over a period of time greater than one year.
C) an outlay for current asset expansion.
D) commonly used to expand the level of operations.

Question

Quizplus · Accepted Answer

A capital expenditure is an outlay made for the earning assets of the firm that is expected to produce benefits over a period of time greater than one year. It is commonly used to expand the level of operations. However, it is not an outlay for current asset expansion, as current assets are typically acquired for short-term use and do not produce benefits over a period of time greater than one year.

A Capital Expenditure Is All of the Following EXCEPT