Which of the following is a capital expense?

The correct answer is B. Building purchase. A capital expense is the cost of acquiring or making improvements to fixed assets that have a useful life of more than one year. A building purchase is an example of a capital expense, as it is a long- term investment that increases the value of the company's assets. Building…

Project Management Concepts

Question

Options

ABuilding lease
BBuilding purchase
CBuilding maintenance
DBuilding insurance

How the community answered

(29 responses)

A
3% (1)
B
93% (27)
D
3% (1)

Explanation

A capital expense is the cost of acquiring or making improvements to fixed assets that have a useful life of more than one year. A building purchase is an example of a capital expense, as it is a long- term investment that increases the value of the company's assets. Building lease, maintenance, and insurance are not capital expenses, as they are recurring or short-term costs that do not increase the value of the company's assets.

Topics

#Capital expense#Cost management#Financial accounting#Project costs

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