Which of the Following Is a Criterion for a Capital

question 20

Multiple Choice

Which of the following is a criterion for a capital expenditure?

• A) It must be significant in amount
• B) It should benefit several periods
• C) It should increase the productive life or capacity of an asset
• D) All of these are criteria for a capital expenditure

---

Definitions:

Dorsal Cavity

One of two main body cavities in humans; contains the cranial cavity and vertebral canal.

Diaphragm

A large, dome-shaped muscle located at the base of the lungs, playing a crucial role in breathing by contracting and relaxing to allow air in and out of the lungs.