Capital expenditures are recorded in the

A. Trading account

B. Profit & Loss account

C. Balance sheet

D. All of the above

Answer: Option C

Solution(By Examveda Team)

Capital expenditures are recorded in the Balance sheet. A capital expenditure is recorded as an asset, rather than charging it immediately to expense. It is classified as a fixed asset, which is then charged to expense over the useful life of the asset, using depreciation.