Which of the following is classified as a capital investment decision?

Question

Quizplus · Accepted Answer

A capital investment decision refers to the investment made in long-term assets, such as property, plant, and equipment (PP&E). Therefore, purchasing a building is a capital investment decision.

Answer: B, C, D are not capital investment decisions.

- Purchasing inventory is a short-term decision and does not involve any fixed asset acquisition.
- Paying interest on bonds is a financial expense associated with debt financing and is not related to fixed asset investment.
- Purchasing a 6-month treasury bill is a short-term investment decision and is not related to any long-term fixed asset investment.

Which of the Following Is Classified as a Capital Investment