Asked by Jalon Lipford on May 18, 2024

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Capital expenditures would include:

A) additions.
B) betterments.
C) extraordinary repairs.
D) All of these answers are correct.

Capital Expenditures

Capital expenditures are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Additions

Refers to increases or expenses added to a specific account, often relating to assets like buildings or equipment.

Extraordinary Repairs

Infrequent expenditures that extend an asset’s life (such as a new engine in a car).

  • Gain an understanding of the financial treatments for capital investments such as equipment and furniture.
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SR
Shaima RehmaniMay 25, 2024
Final Answer :
D
Explanation :
Capital expenditures include additions, betterments, and extraordinary repairs, as they are costs incurred to acquire or improve a fixed asset, thereby increasing its value or extending its useful life.