Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Capital expenditure is
The correct answer is C. N240,000
Capital expenditure refers to the funds spent by a company to acquire, maintain, and upgrade fixed assets, such as buildings, vehicles, equipment, or land.
It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof.
In this case, the capital expenditures are:
- Hospital building: N200,000
- Hospital beds and mattresses: N40,000
So, the total capital expenditure is N200,000 + N40,000 = N240,000.
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