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What characterizes capital expenditure?
  • a)
    It leads to the creation of capital assets
  • b)
    It is incurred to maintain existing services
  • c)
    It is a type of voluntary spending
  • d)
    It involves transfer payments to individuals
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What characterizes capital expenditure?a) It leads to the creation of ...
Capital expenditure is characterized by the investment made to create capital assets, which leads to the formation of capital stock. This type of spending is crucial for infrastructure projects, such as building roads and bridges, which promote long-term economic development.
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