Concept:Capital expenditure is money spent to acquire or improve a fixed asset that will benefit the business for more than one accounting period.
Explanation:Capital expenditure increases the earning capacity or value of the business.
It is used to buy fixed assets such as machinery, buildings, or equipment.
The cost is recorded as an asset in the balance sheet, not as an expense in the income statement.
Maintenance of an office machine is a revenue expense because it only keeps the asset in working condition.
Purchase of office stationery is a regular running cost.
Carriage inwards is part of the cost of purchasing goods for resale.
Purchase of office machinery is a long-term asset acquired for use in the business.
Therefore, the capital expenditure item is the purchase of office machinery.
Answer:D. Purchase of office machinery