Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 4)
Which of the following is a common characteristic of a capital expenditure?
It benefits the business for only a short period of time (usually under a year).
It is typically a recurring expense.
It increases the earning capacity or efficiency of an asset.
It is recorded as an expense on the income statement immediately.
Explanation
Capital expenditure increase the value of an asset.
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