Question

A capital expenditure, from the accounting point of view, is:

A current outlay of funds in the expectation of a stream of benefits extending far into the future


Current and future outlays of funds in the expectation of a stream of benefits extending far into future


An asset that is shown as an expenditure on the balance sheet


An expenditure that is shown as an asset on the balance sheet​

Answer 1

Answer:

An expenditure that is shown as an asset on the balance sheet

Answer 2

Capital expenditure is the asset shown as an expenditure on the balance sheet.

• Capital consumptions are the finances utilized by an enterprise to obtain, redesign, and keep up actual resources.
• The examples include the property, plants, structures, innovation, or gear. It is regularly used to attempt new undertakings or ventures by an organization.
• At the point when consumption is capitalised, it is named a resource on the monetary record. To get the resource off the accounting report it must be expensed and travel through income statement.