Which of the following is an accurate statement regarding capital expenses?

The correct answer is C. Capital expenses are typically long-term investments with value being realized through their use. Capital expenses are costs incurred in acquiring or improving long-term assets, such as buildings, equipment, and land. They are typically depreciated over a period of time, and their value is realized through their use in generating revenue.

Strategic Planning, Finance, Procurement, and Vendor Management

Question

Options

AThey are easily reduced through the elimination of usage, such as reducing power for lighting of
BCapital expenses can never be replaced by operational expenses
CCapital expenses are typically long-term investments with value being realized through their use
DThe organization is typically able to regain the initial cost by selling this type of asset

How the community answered

(62 responses)

A
15% (9)
B
3% (2)
C
73% (45)
D
10% (6)

Explanation

Capital expenses are costs incurred in acquiring or improving long-term assets, such as buildings, equipment, and land. They are typically depreciated over a period of time, and their value is realized through their use in generating revenue.

Topics

#capital expenses#financial management#IT budgeting#asset lifecycle

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