Respuesta :
Answer:
a.asset account
Explanation:
Capital expenditure is when firms or businesses spend money to buy new assets so whenever there is a capital expenditure by a company there assets will increase and whenever assets increase it will result to a debit to the asset account, because whenever an asset increases we debit the asset account.
Answer:
The correct answer is a.asset account.
Explanation:
A capital expenditure results in a debit to an asset account. Capital expenditures are not expensed out in profit ans loss account when incurred. These are costs whose benifits are not limited to one accounting period. So these costs are expensed out as benifits are derived from them. Entry to record them is given below.
Debit Asset Account xxxxx
Credit Cash xxxxx
