EC-Council
712-50 · Question #376
712-50 Question #376: Real Exam Question with Answer & Explanation
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.
Question
Which of the following is an accurate statement regarding capital expenses?
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
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.
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