Which of the following below is an example of a capital expenditure?
A) cleaning the carpet in the front room
B) tune-up for a company truck
C) replacing an engine in a company car
D) replacing all burned-out light bulbs in the factory

Question

Quizplus · Accepted Answer

Capital expenditures are investments made in fixed assets that provide long-term benefits for a company. Replacing an engine in a company car is an example of a capital expenditure because it increases the value and productivity of the car and provides a long-term benefit to the company. Option A is an example of a recurring expense, while option B and D are maintenance expenses.

Which of the Following Below Is an Example of a Capital