- 1 Marks
Question
Which of the following payments is an example of capital expenditure?
A. Refurbishment as part of upgrading a building
B. Carriage outwards in respect of goods sold
C. Legal fees incurred to recover customer debts
D. Bonuses to production operatives
E. Maintenance cost of building
Answer
A. Refurbishment as part of upgrading a building
Explanation:
Capital expenditure refers to spending on acquiring or improving long-term assets, like property or equipment. Upgrading a building is considered capital expenditure as it enhances the asset’s value.
- Tags: Building Upgrades, Capital Expenditure, PPE
- Level: Level 1
- Uploader: Theophilus