Capital expenditure is reported on the:
A) income statement under operating expenses.
B) balance sheet under fixed assets.
C) statement of retained earnings under contributed capital.
D) cash flow statement under cash flow from financing activities.

Question

Quizplus · Accepted Answer

Capital expenditures are investments made in fixed assets that are expected to provide benefits beyond the current fiscal year. Therefore, they are reported as long-term assets on the balance sheet under the category of fixed assets.

Capital Expenditure Is Reported on The