Question

Which of the following is capital expenditure?
a)wages
b) wages paid for building construction
c) repair expenses of building
d) advertisement expenses

Answer 1

Answer:

Explanation:

B)wages paid for building construction

Answer 2

CAPITAL EXPENDITURE

(B) Wages paid for building construction is a capital expenditure.

GETTING TO KNOW MORE ABOUT CAPITAL EXPENDITURE:

* A company's capital expenditures are cash used to purchase, update, and maintain tangible assets such as land, plants, buildings, technology, and equipment.

*  It is frequently used when a corporation embarks on new initiatives or makes investments. Repairing a roof, acquiring equipment, or establishing a new factory are all examples of capital expenditures on fixed assets. Companies use this form of financial investment to expand the scope of their activities or to add some economic advantage to the activity.

* The amount of capital expenditures a firm will likely incur is determined by its industry. Oil exploration and production, telecommunications, manufacturing, and utility industries are among the most capital-intensive businesses, with the greatest amounts of capital expenditures.