A capital expenditure results in a debit to:
A) an expense account.
B) a stockholders' equity account.
C) a liability account.
D) an asset account.

Question

Quizplus · Accepted Answer

A capital expenditure involves the purchase or improvement of long-term assets, such as property, plant, and equipment. Therefore, the expenditure results in an increase in the value of an asset account, which is recorded as a debit entry.

A Capital Expenditure Results in a Debit To