Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:
A) a capital gain
B) a wealth maximizing factor
C) a capital expenditure
D) a cost of capital
E) a dividend reinvestment

Question

Quizplus · Accepted Answer

A current outlay that is expected to yield a flow of benefits beyond one year in the future is considered a capital expenditure. Capital expenditures are typically made to acquire or improve long-term assets such as property, equipment, or technology, with the goal of increasing future revenue or profitability. Examples of capital expenditures may include building a new production facility, investing in research and development, or upgrading computer systems.

Any Current Outlay That Is Expected to Yield a Flow