Question : Which of the following is considered a capital expense?
Option 1: Payment of salaries
Option 2: Pension
Option 3: Construction of school buildings
Option 4: Subsidies
Correct Answer: Construction of school buildings
Solution : The correct option is the Construction of school buildings .
The construction of school buildings is generally considered a capital expense. When a school constructs new buildings or undertakes significant renovations or expansions, the costs associated with these activities are considered capital expenditures.
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