Certified Chief Information Security Officer (CCISO) — Question 36

What is one key difference between Capital expenditures and Operating expenditures?

Answer options

• A. Operating expense cannot be written off while Capital expense can
• B. Operating expenses can be depreciated over time and Capital expenses cannot
• C. Capital expenses cannot include salaries and Operating expenses can
• D. Capital expenditures allow for the cost to be depreciated over time and Operating does not

Correct answer: D

Explanation

The correct answer, D, accurately states that Capital expenditures can be depreciated over time, while Operating expenditures typically cannot. Options A and B are incorrect because Operating expenses can often be deducted and are not depreciated like Capital expenses. Option C is misleading as it incorrectly categorizes salary expenses.