Which of the following is considered a **capital expense**?

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**Solution:**

1. A **capital expense** (capital expenditure) refers to money spent by an organization to acquire, maintain, or improve fixed assets such as buildings, land, or equipment.

2. These expenses are usually large, one-time costs that provide benefits over a long period.

3. Examples of capital expenses include construction of buildings, purchase of machinery, or land acquisition.

4. In contrast, **revenue expenses** are day-to-day operating costs such as payment of salaries, pensions, and subsidies, which are consumed within the current accounting period.

5. Among the given options:
   - Pension, payment of salaries, and subsidies are recurring operating expenses (revenue expenses).
   - Construction of school buildings is a capital expense as it creates a long-term asset.

**Answer:** Construction of school buildings

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