Question

The money spent to purchase new machine or building for gaining profits in future is

called

a. Investment

b. Expenditure

c. Losses

d. None of these​

Answer 1

expenditure

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Answer 2

Such money spent is known as Investment.

• To invest is to allot cash in the assumption for some advantage or return later on.

• To invest implies claiming a resource or a thing with the objective of creating pay from the speculation or the appreciation of venture which is an increment in the estimation of the resource throughout some stretch of time

• Thus, the cash spent to buy a new machine or work for acquiring benefits in the future is an investment.