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Question
Capital expenditure is incurred for ______.
Options
Acquisition of fixed assets.
Day-to-day conduct of business.
Maintaining the existing earning capacity.
All of these.
Solution
Capital expenditure is incurred for Acquisition of fixed assets.
Explanation:
All expenditure incurred to acquire or increase the value of fixed assets which are used in the business for the purpose of earning revenue are called capital expenditure.
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