Economics · Accounting
Which one of the following statements is NOT true regarding capital expenditure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Heavy expenditure on advertisement campaign s to introduce a new product in the market is a capital expenditure.✓
- 2Capital expenditure results in the acquisition of a permanent asset.
- 3Capital expenditure results in a benefit which will last for a long time.
- 4Capital expenditure results in extra capacity.
Correct answer
Heavy expenditure on advertisement campaign s to introduce a new product in the market is a capital expenditure.
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