A Capital Expenditure Results in a Debit to

question 59

Multiple Choice

A capital expenditure results in a debit to

• A) an expense account
• B) a capital account
• C) a liability account
• D) an asset account

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Definitions:

Divestiture

The process of selling off a business unit or division, or disposing of an asset, as part of a strategic business decision.

Exchange Rates

The price of one currency in terms of another for conversion purposes.

Global Companies

Enterprises that operate in multiple countries around the world, offering products or services to a global customer base.

Fluctuations

Variations or changes in level, degree, or value that occur over a period of time.