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Which one of the following is NOT true about capital expenditure...

This question belongs to Commerce Accounting
Accounting
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Which one of the following is NOT true about capital expenditure?

Answer & Solution
Correct Answer: Option D
Capital expenditure does not reduce the profit of the concern. Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company.
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