One example of a capital expenditure is ordinary maintenance cost such as an oil change for a company truck.

Question

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A capital expenditure is a cost incurred to acquire or improve a long-term asset, such as buying a new truck, building renovations, or purchasing new equipment. Ordinary maintenance costs, such as an oil change, are considered a regular operating expense and are not categorized as capital expenditures.

One Example of a Capital Expenditure Is Ordinary Maintenance Cost