Question

1. What is a Capital Expenditure?

Answer 1

Capital Expenditure:
Capital expenditure may represent the acquisition of any tangible or intangible fixed asset for enduring future benefits. It contributes to the revenue earning capacity of business over more than one accounting period.
Expenses which are non-recurring and infrequent in nature and do not occur often in an accounting year is known as capital expenditure.
In case of materiality - if the expenditure does not increase the productive capacity of an asset, it may be capitalized because the amount is material or expenditure may increase the asset value yet to be capitalized though the amount is immaterial.