What is Capital Expenditure
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Answer / s.krishna manohar
expenditure incurred by a company to acquire fixed assets
or long term assets is called capital expenditure.for
eg.purchase of land and buildings.
| Is This Answer Correct ? | 94 Yes | 8 No |
Answer / guest
Funds used by a company to acquire or upgrade physical
assets such as property, industrial buildings or equipment.
This type of outlay is made by companies to maintain or
increase the scope of their operations. These expenditures
can include everything from repairing a roof to building a
brand new factory.
| Is This Answer Correct ? | 76 Yes | 21 No |
Answer / guddanti
Capital expenditure is the expenditure to acquisition of an
asset for a long period to increase the capacity of
business.
| Is This Answer Correct ? | 36 Yes | 5 No |
Answer / harpreet kaur
capital expenditure is basically a long term expenditure
which company do for its production for expamles machinery
purchased by a company comes under capital expenditure
| Is This Answer Correct ? | 26 Yes | 7 No |
Answer / jen
Capital Expenditure is the expenditure made on long term
investments and assets by a company.
| Is This Answer Correct ? | 18 Yes | 6 No |
Answer / vijaygyanchandani
capital expenditure(capex) is the investment of the
companies for acquiring the fixed assets in case of
expansion and starting of new business. examples are land,
building,machinery e.t.c
| Is This Answer Correct ? | 15 Yes | 4 No |
Answer / shalini parisha
Capital expenditures (CAPEX or capex) are expenditures
creating future benefits. A capital expenditure is incurred
when a business spends money either to buy fixed assets or
to add to the value of an existing fixed asset with a
useful life that extends beyond the taxable year. Capex are
used by a company to acquire or upgrade physical assets
such as equipment, property, or industrial buildings.
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / sanjay jha
A long term expenditure that can be distributed in further
subsequent year to aquire long term assets for the use of
business.
| Is This Answer Correct ? | 15 Yes | 5 No |
Answer / ravichandra
capital expenditure may be defines as an amount spent for
the acquition of fixed assets which are having long life and
which are use ful long term purpose is called capital
expenditure.
| Is This Answer Correct ? | 13 Yes | 4 No |
Answer / dixit m shah
Capital expenditures (CAPEX or capex) are expenditures
creating future benefits. A capital expenditure is incurred
when a business spends money either to buy fixed assets or
to add to the value of an existing fixed asset with a
useful life that extends beyond the taxable year. Capex are
used by a company to acquire or upgrade physical assets
such as equipment, property, or industrial buildings. In
accounting, a capital expenditure is added to an asset
account ("capitalized"), thus increasing the asset's basis
(the cost or value of an asset as adjusted for tax
purposes). Capex is commonly found on the Cash Flow
Statement as "Investment in Plant Property and Equipment"
or something similar in the Investing subsection.
For tax purposes, capital expenditures are costs that
cannot be deducted in the year in which they are paid or
incurred, and must be capitalized. The general rule is that
if the property acquired has a useful life longer than the
taxable year, the cost must be capitalized. The capital
expenditure costs are then amortized or depreciated over
the life of the asset in question. As stated above, capital
expenditures create or add basis to the asset or property,
which once adjusted, will determine tax liability in the
event of sale or transfer. In the US, Internal Revenue Code
ยงยง263 and 263A deal extensively with capitalization
requirements and exceptions.[1]
Included in capital expenditures are amounts spent on:
acquiring fixed assets
fixing problems with an asset that existed prior to
acquisition
preparing an asset to be used in business
legal costs of establishing or maintaining one's right of
ownership in a piece of property
restoring property or adapting it to a new or different use
starting a new business
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.
| Is This Answer Correct ? | 12 Yes | 3 No |
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