Which of the following best describes capital expenditure?

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An expense that provides benefits only within the current financial yearA cost that will generate benefits in the upcoming financial periodAn outlay that leads to the purchase of a long-term assetAn expenditure incurred to obtain a short-term assetNone of the above

Explanation

Capital expenditure refers to costs incurred to acquire or improve long-term assets that will provide benefits over multiple accounting periods. Unlike regular expenses, these are non-recurring and are associated with permanent assets such as property, plant, or equipment.