Question

What is a major characteristic of capital expenditure?

• A. It is primarily used for day-to-day operational costs.
• B. It leads to a decrease in the company's overall revenue.
• C. It results in the creation of long-term assets.
• D. It is a short-term investment with immediate returns.

Answer 1

Answer:

C. It results in the creation of long-term assets.

• Capital expenditure is money spent on creating long-term assets like buildings, roads, and machinery, or on repaying loans. .