| Capital Expenditure |
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Included in such amounts is spending on: # acquiring Fixed Asset s # bringing them into business # legal costs of buying buildings # carriage inwards on machinery bought # any other cost needed for a fixed asset ready for use. An ongoing question of the accounting of any company is whether certain expenses should be ''capitalized'' or ''expensed''. Costs that are expensed in a particular month simply appear on the Financial Statement as a cost that was incurred that month. Costs that are capitalized, however, are Amortized over multiple years. Capitalized expenditures show up on the balance sheet. Most ordinary business expenses are clearly either expensable or capitalizable, but some expenses could be treated either way, according to the preference of the company. The counterpart of capital expenditure is Operational Expenditure ("OpEx"). SEE ALSO
Aggregate demand expenditure equals real GDP . EXTERNAL LINKS |
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