Which expense is the counterpart of capital expenditure?
AOperating expense
BFixed asset cost
CCapitalised interest
DRetained earnings
Answer & Solution
Correct answer: A. Operating expense
Operating expense covers ongoing costs inherent to running the asset, in contrast to capex.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.
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?What is capital expenditure (capex)?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?