Question

SHORT ANSWER QUESTIONS
1. Explain the following terms with examples:
(a) Capital Expenditure (b) Non-Current Assets
(Delhi, 2016)​

Answer 1

Answer:

capital expenditure :- money spent by a business or organisation on acquiring or maintaining fixed assets such as land , building and equipment

Answer 2

Answer:

✍✍

1. Capital Expenditures:

Capital expenditures are a long-term investment, meaning the assets purchased have a useful life of one year or more.

Example:Furniture,Plant,etc.

✍✍

2. Non-Current Assets:

Noncurrent assets are a company's long-term investments for which the full value will not be realized within the accounting year.

Example:Property,etc.