Give two examples of capital expenditure.
Answers
Answer:
: The two examples of capital expenditure are.
Purchase of Machinery
Expenditure on the installation of Machinery
Answer:
A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period. Examples of capital expenditures are as follows:
Buildings (including subsequent costs that extend the useful life of a building)
Computer equipment
Office equipment
Furniture and fixtures (including the cost of furniture that is aggregated and treated as a single unit, such as a group of desks)
Intangible assets (such as a purchased taxi license or a patent)
Land (including the cost of upgrading the land, such as the cost of an irrigation system or a parking lot)
Machinery (including the costs required to bring the equipment to its intended location and for its intended use)
Software
Vehicles.
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