Capital expenditure

From LawGuru Wiki

Capital expenditures ("CAPEX") are expenditures used by a company to acquire or upgrade physical assets such as equipment, property, industrial buildings. In accounting, a capital expenditure is added to an asset account (i.e. capitalized), thus increasing the asset's basis.

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. 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.

See also

• Cash flow statement
• Income statement
• Expense

External links

• Capital Expenditure - CAPEXcs:Kapitálové náklady

de:CAPEX

LawGuru Legal Forms Search by category Popular Forms: Accounting, Affidavits, Assignments, Attorney Forms & Guides, Bankruptcy, Bill of Sale, Business, Canadian Forms, Collections, Confidentiality, Contracts, Copyright, Corporations, Credit, Declarations, Deeds, Divorce, Employment, Entertainment Law, Family & Consumer, Family Law, Government, Health Care, Homestead, Indemnity Agreements, Intellectual Property, Internet, Landlord & Tenant, Leases & Rentals, Letters, Limited Liability Co., Living Trusts, Name Change, Non-Compete, Non-Disclosure, Notices, Parental Permissions, Partnership, Power of Attorney, Promissory Notes, Real Estate, Receipts, Releases, Sale of Goods, Spanish Forms, Technology, Trusts, UCC Forms, Wills, more...