Expenditure which result in acquisition of permanent asset is a capital expenditure ?

Question

Accepted Answer

Yes, expenditure resulting in the acquisition of a permanent asset is considered a capital expenditure.

Capital expenditures are investments made by a company to acquire or improve long-term assets.
These assets are expected to provide benefits to the company over a long period of time.
Examples of capital expenditures include purchasing land, buildings, machinery, vehicles, or equipment.
Capital expenditures are typically recorded as assets on the balance sheet and depreciated over their useful lives.
In contrast, revenue expenditures are expenses incurred in the day-to-day operations of a business.

Accepted Answer

YES

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