Which of the following is an item of capital expenditure?
AInstallation charges paid in conjunction with the purchase of Office Equipment
BMonthly rent of a machinery used in the business
CResearch and development costs during the year
DInterest on borrowed fund utilized for acquisition of Office Furniture
Correct answer
A. Installation charges paid in conjunction with the purchase of Office Equipment
Explanation
A capital expenditure is a non- recurring expenditure whose benefit lasts for more than one accounting period. Installation charges paid in conjunction with the purchase of office equipment is an one-time expenditure whose benefit lasts for more than one accounting period.