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

Question

Quizplus · Accepted Answer

A capital expenditure is an investment in a long-term asset or improvement that will benefit the company over an extended period. Therefore, it will result in a debit to an asset account. The other options, such as an expense account, a capital account, or a liability account, would not be appropriate for recording a capital expenditure.

A Capital Expenditure Results in a Debit to