Question

which of the following is example of capital expenditure (1) building purchase(2) vehicles (3) equipment purchase(4) all of these​

Answer 1

Answer : ( 4 ) All of the above

Capital expenditure is the expenditure done for long terms.

( 1 ) building purchase

Building is a fixed assets and the amount spent on its purchase will be for long term, hence it is a capital expenditure.

( 2 ) Vehicles : We buy vehicles as an asset for long term hence it will be a capital expenditure.

( 3 ) Equipment purchase : Equipments purchased for the factory are for long term. Since, they do not get replaced regularly, it is an capital expenditure.

From above we can clearly state that all the options are a capital expenditure hence the option is

( 4 ) All of the above.

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