Question

Capital expenditure is incurred for ______.

Options

• Acquisition of fixed assets.

• Day-to-day conduct of business.

• Maintaining the existing earning capacity.

• All of these.

Answer 1

Capital expenditure is incurred for Acquisition of fixed assets.

Explanation: 

All expenditure incurred to acquire or increase the value of fixed assets which are used in the business for the purpose of earning revenue are called capital expenditure.