Question

A capital expenditure is charged to owners' capital.

True or False

Answer 1

False.

Capital Expenditure is money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment. It is shown in the asset side of the balance sheet and is charged over the years ( depending upon the life of asset or time period over which benefit will be derived) from the profit of the company for the year under consideration.

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