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Question
Expenditures incurred to acquire fixed assets are called ______.
Options
Revenue expenditures
Prepaid expenses
Capital expenditures
Outstanding expenses
Solution
Expenditures incurred to acquire fixed assets are called Capital expenditures.
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.
RELATED QUESTIONS
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