Which of the following is a capital expenditure?
A) Sales tax paid in conjunction with the purchase of office equipment.
B) Monthly rent of a delivery truck.
C) Research and development costs.
D) Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket.

Question

Quizplus · Accepted Answer

Sales tax paid in conjunction with the purchase of office equipment is a capital expenditure because it is part of the cost of acquiring a long-term asset.

Which of the Following Is a Capital Expenditure