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Which statement best explains Capital expenditure?

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Question ID #25870 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Capital expenditure?

Correct Answer: D. Expenditure creating or improving a long-term asset or benefit
Capital expenditure: Expenditure creating or improving a long-term asset or benefit

Question: Which statement best explains Capital expenditure?

A. Assets = Liabilities + Equity

B. Statement of financial position showing assets, liabilities and equity at a point in time

C. Statement reconciling differences between bank balance per books and bank statement

D. Expenditure creating or improving a long-term asset or benefit

Correct Answer: D. Expenditure creating or improving a long-term asset or benefitCapital expenditure: Expenditure creating or improving a long-term asset or benefit

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Which statement best explains Capital expenditure? - MCQ Explanation

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Correct answer: D. Expenditure creating or improving a long-term asset or benefit