Start learning →

Which of these spending items is a capital expenditure?

APaying a monthly cleaning contract
BPaying routine office stationery bills
CPaying a month's electricity bill
DBuying new equipment for a plant
Answer & Solution
Correct answer: D. Buying new equipment for a plant
Buying new equipment acquires a fixed asset with multi year use, while the others are routine running costs.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting lesson →
Related questions