Question

Expenditures incurred to acquire fixed assets are called ______.

Options

• Revenue expenditures

• Prepaid expenses

• Capital expenditures

• Outstanding expenses

Answer 1

Expenditures incurred to acquire fixed assets are called Capital expenditures.

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.