Expenditures that add to the utility of fixed assets for more than one accounting period are called:
A)committed expenditures.
B)revenue expenditures.
C)current expenditures.
D)capital expenditures.

Question

Quizplus · Accepted Answer

Capital expenditures are expenditures that add value to fixed assets and contribute to generating revenue over a period of time. These expenditures are usually related to acquisition, construction, or improvements of long-term assets that are depreciable over time. Examples of capital expenditures include purchasing a new building, upgrading an existing facility, or buying new equipment that will be used for several years.

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