Which of the Following Below Is an Example of a Capital

question 88

Multiple Choice

Which of the following below is an example of a capital expenditure?

• A)replacing an engine in a company car
• B)cleaning the carpet in the front room
• C)replacing all burned-out light bulbs in the factory
• D)tune-up for a company truck

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Definitions:

Bill Payments

The process of settling financial obligations for services rendered or goods provided.

Just-In-Time Scheduling

A method of minimizing inventory by sending out materials to workstations “just in time” to be used.

Production Delays

Refers to instances where the manufacturing or creation of products is slowed down or postponed due to various unforeseen issues such as supply chain disruptions, labor shortages, or equipment failures.

Raw Materials

Basic materials used in the production of goods, typically natural resources such as metals, wood, or oil.