A capital expenditure results in a debit to a(n)
A)expense account.
B)capital account.
C)asset account.
D)liability account.

Question

Quizplus · Accepted Answer

Capital expenditures are expenses incurred to acquire or improve a long-term asset such as property, plant, and equipment. As such, they result in a debit to an asset account, which reflects the cost of the asset being added to the company's balance sheet. This increases the value of the asset and reflects the investment being made by the company in its long-term capabilities.

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