Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment is called ________.

capital expenditure

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

revenue expenditure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

both A and B

No worries! We‘ve got your back. Try BYJU‘S free classes today!

none

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C capital expenditure

Capital expenditure are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm.

Suggest Corrections

Similar questions

Q. When the government raises funds either by incurring a liability or by reducing assets is called _____________.

Q. Office equipment is a _________ asset for a computer manufacturer company and ________ asset for a company that deals in these equipments.

Q. A Banking system under which the banks are to raise low cost funds and invest such funds in low risk assets such as government securities is called __________.

In case a company does not have sufficient funds for the purchase of fixed assets or for payment to creditors it may offer and allot its shares to vendor/ creditors in lieu of cash. In such a case, which account is debited ?

Q. If you want to recommend that your company upgrade its equipment, it would be most likely that you would write a _____________.

Join BYJU'S Learning Program

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment is called ________.

The correct option is C capital expenditure Capital expenditure are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm.

The correct option is C capital expenditure

Capital expenditure are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm.