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Post Leave a Reply You must be logged in to post a comment. Capital Expenditure Explanation Job Function Email List and Meaning Posted on February by Aufa Atila in Accounting Business Economics Finance A business certainly requires capital which will be used to finance the companys expenses and production. In financial recording there are two types of expenditure namely Capital Expenditure and Operating Expense. These two types of expenditure have different characters even though they are both types of expenditure. Not only that in tax regulations these two expenses are also subject to different tax rules.
So in this article we will discuss what capital expenditure is in a company its types and why there must be capital expenditure in a company What is Capital Expenditure Image result for unsplash expenditure Capital expenditure or what is commonly known as CAPEX is the cost incurred by an organization or company to purchase maintain or repair fixed assetslongterm assets. Examples of these assets include cars buildings equipment or land. An expenditure is categorized as CAPEX if the expenditure is used to purchase a new longterm asset or when it is used to extend the useful life of an asset for example repairing a building roof. Capital expenditure is.
Post Leave a Reply You must be logged in to post a comment. Capital Expenditure Explanation Job Function Email List and Meaning Posted on February by Aufa Atila in Accounting Business Economics Finance A business certainly requires capital which will be used to finance the companys expenses and production. In financial recording there are two types of expenditure namely Capital Expenditure and Operating Expense. These two types of expenditure have different characters even though they are both types of expenditure. Not only that in tax regulations these two expenses are also subject to different tax rules.
So in this article we will discuss what capital expenditure is in a company its types and why there must be capital expenditure in a company What is Capital Expenditure Image result for unsplash expenditure Capital expenditure or what is commonly known as CAPEX is the cost incurred by an organization or company to purchase maintain or repair fixed assetslongterm assets. Examples of these assets include cars buildings equipment or land. An expenditure is categorized as CAPEX if the expenditure is used to purchase a new longterm asset or when it is used to extend the useful life of an asset for example repairing a building roof. Capital expenditure is.