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EC-Council

512-50 · Question #367

What is one key difference between Capital expenditures and Operating expenditures?

The correct answer is C. Capital expenses cannot include salaries and Operating expenses can. See the full explanation below for the reasoning.

Question

What is one key difference between Capital expenditures and Operating expenditures?

Options

  • AOperating expense cannot be written off while Capital expense can
  • BOperating expenses can be depreciated over time and Capital expenses cannot
  • CCapital expenses cannot include salaries and Operating expenses can
  • DCapital expenditures allow for the cost to be depreciated over time and Operating does not

How the community answered

(32 responses)
  • A
    6% (2)
  • B
    3% (1)
  • C
    81% (26)
  • D
    9% (3)

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Full 512-50 Practice