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    Question

    Consider of the following statement is/are correct about Capital expenditures (CAPEX)?

    I. These are often used to undertake new projects or investments by a company.

    II. The purpose of CAPEX is to expand a company's ability to generate revenue and earnings.

    III. CAPEX can include the purchase of the Manufacturing equipment.

    Which of the above statement is/are correct?

    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C III only Correct Answer Incorrect Answer
    D All are true Correct Answer Incorrect Answer
    E All are false Correct Answer Incorrect Answer

    Solution

    Capital expenditures are often used to undertake new projects or investments by a company. Typically, the purpose of CAPEX is to expand a company's ability to generate revenue and earnings. Capital expenditures can include the purchase of the following: 1. A facility or factory, including an upgrade or expansion 2. Vehicles, such as trucks used for the delivery of products 3. Manufacturing equipment 4. Computers 5. Furniture

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