alleryStart learning →What is capital expenditure (capex)?
AMoney spent to improve fixed assets
BMoney spent on monthly power bills
CMoney paid as shareholder dividends
DMoney kept aside for staff bonuses
Answer & Solution
Correct answer: D. Money kept aside for staff bonuses
Capex is spending to acquire, maintain or improve fixed assets such as buildings, vehicles and equipment.
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Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?Rs 90,000 is invested and yields Rs 30,000 net cash each year. When is it paid back?