Capital expenditures, also called balance sheet expenditures, are additional costs of plant assets that provide benefits extending beyond the current period.

Question

Quizplus · Accepted Answer

Capital expenditures involve investing in long-term assets such as property, plant, and equipment that provide benefits over multiple periods. These expenses are typically recorded on the balance sheet rather than the income statement.

Capital Expenditures, Also Called Balance Sheet Expenditures, Are Additional Costs