Which of the following statements is NOT true regarding capital expenditure(s)?

Question

TuteeHUB · Accepted Answer

Capital expenditures are spread over more than one accounting period.

TuteeHUB · Answer

Capital expenditure is transferred to trading and profit and loss account.

TuteeHUB · Answer

Capital expenditure benefits more than one accounting year.

TuteeHUB · Answer

Capital expenditure is incurred to acquire fixed assets for operation of business.

1.	Which of the following statements is NOT true regarding capital expenditure(s)?
A.	Capital expenditure is transferred to trading and profit and loss account.
B.	Capital expenditures are spread over more than one accounting period.
C.	Capital expenditure benefits more than one accounting year.
D.	Capital expenditure is incurred to acquire fixed assets for operation of business.
Answer» B. Capital expenditures are spread over more than one accounting period.

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