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    Question

    Which of the following is an example of capital

    expenditure?
    A Payment of monthly rent Correct Answer Incorrect Answer
    B Purchase of a new office chair Correct Answer Incorrect Answer
    C Construction of a new building Correct Answer Incorrect Answer
    D Purchase of office supplies Correct Answer Incorrect Answer

    Solution

    The construction of a new building is an example of capital expenditure because it involves the acquisition or improvement of a long-term asset that is expected to provide benefits to the company over a period of more than one year.

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