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LSDefine

Simple English definitions for legal terms

capital expenditure

Read a random definition: liberum maritagium

A quick definition of capital expenditure :

Capital expenditure: Capital expenditure, or CapEx, is money that a business spends to buy, improve, or maintain assets like buildings, equipment, or land. This spending is shown on the cash flow statement and can be calculated by adding the change in plant, property, and equipment from the previous accounting cycle to the current depreciation. Essentially, it shows how much a business is investing in its long-term assets.

A more thorough explanation:

Capital expenditures (CapEx) refer to the funds that a company uses to acquire, upgrade, or maintain capital assets. These assets can include buildings, equipment, and other long-term investments that are essential to the company's operations.

CapEx is reflected in the cash flow statement, which shows the inflow and outflow of cash in a business. To calculate CapEx, you can add the current depreciation with the change in plant, property, and equipment (PP&E) from the previous accounting cycle. This measurement shows how much a business invests in capital assets.

  • A company purchases a new manufacturing plant to increase production capacity. This is a capital expenditure because it is a long-term investment that will benefit the company for many years.
  • A restaurant buys new kitchen equipment to replace old, worn-out appliances. This is also a capital expenditure because the equipment is essential to the restaurant's operations and will be used for many years.
  • A business spends money on research and development to create a new product. This is not a capital expenditure because it is an expense that is not expected to generate long-term benefits.

The examples illustrate how capital expenditures are investments in long-term assets that are essential to a company's operations. These investments are expected to generate benefits for many years, which is why they are reflected in the cash flow statement and are an important part of a company's financial planning.

capital case | capital gains

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JumpySubsequentDolphin
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babycat
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JumpySubsequentDolphin
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m10
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JumpySubsequentDolphin
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JumpySubsequentDolphin
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i need to know who decided to do that.
JumpySubsequentDolphin
20:50
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youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
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it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
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