Asked by Jalon Lipford on May 18, 2024
Verified
Capital expenditures would include:
A) additions.
B) betterments.
C) extraordinary repairs.
D) All of these answers are correct.
Capital Expenditures
Capital expenditures are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.
Additions
Refers to increases or expenses added to a specific account, often relating to assets like buildings or equipment.
Extraordinary Repairs
Infrequent expenditures that extend an asset’s life (such as a new engine in a car).
- Gain an understanding of the financial treatments for capital investments such as equipment and furniture.
Verified Answer
SR
Shaima RehmaniMay 25, 2024
Final Answer :
D
Explanation :
Capital expenditures include additions, betterments, and extraordinary repairs, as they are costs incurred to acquire or improve a fixed asset, thereby increasing its value or extending its useful life.
Learning Objectives
- Gain an understanding of the financial treatments for capital investments such as equipment and furniture.