What is Capital Expenditure In Accounting - Capital Expenditure Formula - Definition - Meaning - Examples
Before calculating Capital Expenditures by using an example, Let’s us see the Capital Expenditures definition and meaning. What Are Capital Expenditures In Accounting? Capital Expenditures (Capex) are those expenditures which are incurred by the business but the benefits are still not received by the business during the Current Account Period. These expenditures are Long-term in nature and provide benefits for more than one year. These are specified o nly for Tangible No n Current Assets / Fixed Assets and not for Intangible Assets because Intangible No n Current Assets are acquired and developed and need for Impairment and hence free from capitalization while cost incurred on the purchase and installment of Fixed Assets. Examples are amounts utilized on the purchase of Fixed Assets / Tangible No n Current Assets, like plant & Machinery, Furniture, Office Equipment, tra nsportation cost incurred to bring the asset i...