Which of the Following Would Be Considered a Capital Expenditure

question 180

Multiple Choice

Which of the following would be considered a capital expenditure?

• A) Cost to acquire a printing press
• B) Cost to lubricate a machine
• C) Cost to replace some light bulbs
• D) Cost to paint the factory wall

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Definitions:

Enron Corp.

An American energy company based in Houston, Texas, that famously collapsed in 2001 due to widespread corporate fraud and corruption.

Diversified

A strategy that involves spreading investments across various financial assets, industries, or other categories to reduce risk.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Systematic Risk

The overall impact of market-wide phenomena on the value of investments, as opposed to risks that are specific to a particular investment.