Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits. In the accounting context, capital expenditures are listed to an asset account.
Definition from Nolo’s Plain-English Law Dictionary
Payment by a business to acquire a capital asset or make improvements to an asset which increases its value or adds to its useful life. It includes payments by a business for property, fixtures, machinery, or other capital assets but not for day-to-day operations such as payroll, inventory, maintenance, and advertising.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm