The main feature of capital expenditure is that it results in a benefit which will accrue to the business enterprise for a long time, say _____________.

1 or 2 years

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2 or 3 years

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10 or 15 years

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10 or 15 months

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Solution

The correct option is C 10 or 15 years
Capital expenditure is the money a company spends to buy, maintain or improve its fixed assets such as building, vehicle, land etc. Fixed assets are used for a long period of time say 10 or 15 years. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an asset.

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