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Question : Which of the following is considered a capital expense?

Option 1: Pension

Option 2: Payment of salaries

Option 3: Subsidies

Option 4: Construction of school buildings


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Construction of school buildings


Solution : The correct answer is the Construction of school buildings.

The money spent on purchasing, preserving, or enhancing fixed assets such as buildings, cars, machinery, land, etc is referred to as capital expenditure. Stated differently, it refers to the sum of money used to purchase or improve productive assets like real estate, buildings, cars, etc. to boost a company's capacity or efficiency over multiple accounting periods.

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