Question

The funds a company uses to purchase a fixed asset are.

A. accumulated depreciation
B. accounts receivable
c. capital expenditure D. Depreciation expenses

Answer 1

c. capital expenditure

Step-by-step explanation:

An "asset" is something of value that is being owned by either an individual or a company. "Fixed assets" refer to assets other than cash. Examples of these are: buildings, equipment and land. These are being purchased for the purpose of a long-term objective. It is a "capital expenditure" of a company because the company spent money in order to acquire it and is expecting gains for its long-term purpose.