Question

______ is an example of Capital Expenditure.

Options

• Land and building

• Rent

• Repairs and maintenance

• Interest on loan

Answer 1

Land and building is an example of Capital Expenditure.

Explanation:

Capital expenditures are those that result in the creation of assets or the reduction of liabilities. Here purchase of land and building results in creation of assets. Thus it is considered as a capital expenditure.