Certified Chief Information Security Officer (CCISO) — Question 19

Which of the following is an accurate statement regarding capital expenses?

Answer options

• A. They are easily reduced through the elimination of usage, such as reducing power for lighting of work areas during off-hours
• B. Capital expenses can never be replaced by operational expenses
• C. Capital expenses are typically long-term investments with value being realized through their use
• D. The organization is typically able to regain the initial cost by selling this type of asset

Correct answer: C

Explanation

The correct answer is C because capital expenses are indeed long-term investments that provide value over time through their use. Option A is incorrect as it describes operational expenses, while B is false since capital expenses can sometimes be replaced by operational expenses in certain contexts. Option D is misleading because not all capital assets can be sold for their original purchase price.