Correct question: The expected costs to make replacements, alterations, or improvements to a building that materially prolong its life and increase its value is referred to as
A) operating expenses.
B) capital expenditures.
C) vacancy losses.
D) collection losses.
Answer:
B, capital expenditure
Explanation:
Capital expenditure is the money spent by a company to maintain and organize its fixed assets so as to add value to it as its life span get prolonged.
Capital expenditure can also be said to be the money spent to improve the ability or capability of a long term asset such as a building.
Examples of capital expenditure include, computer equipment, office equipment, etc.
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