A capital expenditure results in a debit to
A)an asset account
B)an expense account
C)a liability account
D)a capital account

Question

Quizplus · Accepted Answer

A capital expenditure is an expense incurred to create future benefit (i.e. beyond the current accounting period) and it typically involves the purchase or upgrade of a long-term asset such as property, plant, or equipment. Therefore, a capital expenditure would result in a debit to an asset account, which represents an increase in the value of the company's assets.

A Capital Expenditure Results in a Debit to