“Capital expenditure.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/capital%20expenditure. Accessed 5 Jan. 2025. Copy Citation Share Post the Definition of capital expenditure to Facebook Facebook Share the Definition of capital expenditure on Tw...
Capital expenditure shouldn't be confused withoperating expenses(OpEx). Operating expenses are shorter-term expenses that are required to meet the ongoing operational costs of running a business. Operating expenses can be fully deducted from the company's taxes in the same year in which the expense...
Define capital expenditure. capital expenditure synonyms, capital expenditure pronunciation, capital expenditure translation, English dictionary definition of capital expenditure. n. 1. Funds spent for the acquisition of a long-term asset. 2. An amount o
A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long-term physical or fixed assets used in a business’s operations. Theexpenditures are capitalized (i.e., not expensed directly on a company’s income statement) on the balance sheet and are...
Capital expenditure (also known as CapEx) is money spent to acquire, repair, or upgrade physical assets such as real estate, structures, or major equipment. Capital expenditures differ from operating expenses because they cannot be expensed out for tax p
Understand the definition of capital expenditure. Study the formula and meaning of CapEx, and learn how to calculate capital expenditures using...
This expense is recorded as a capital expenditure as the new trucks are expected to deliver financial benefits over a number of years. These benefits include: Increased efficiency— Newer technology and better fuel efficiency results in let’s say a 20% increase in productivity. Reduced ...
Capital Expenditure Definition: Capital Expenditure or CapEx refers to the financial outlay made by the firm for an asset which is expected to stay in thebusinessfor a long time, so as to use the same for more than one financial year, which not only generates enduring benefits for thecompany...
The general definition of capital expenditure can be given as the funds utilized by a company for acquiring or upgrading the physical assets like property, equipment, or industrial buildings.
Calculating your capital expenditures Unlike operating expenses which are deducted from a company’s income the same year as they are purchased, investments in physical assets are thought of differently. By definition, a capital expenditure is one that lasts for over a year, like a piece of heavy...