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ASHA 777 [7]
3 years ago
12

Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca

r cleaning the carpet in the front room tune-up for a company truck replacing all burned-out light bulbs in the factory
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

The correct answer is letter "A": replacing an engine in a company car.

Explanation:

Capital Expenditures refers to the company's expenditure on physical assets such as buildings or equipment. Capital expenditure is unusual and can not be deducted from income for tax purposes; instead, the value of capital expenditure is added to the assets of the company and the value is reduced annually by depreciation and amortization.

Therefore, <em>replacing an engine in a company car is a necessary, unexpected expense the firm has to incur.</em>

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Answer:

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Explanation:

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