What does the term capital mean in the context of making capital expenditure decisions?

Social Studies

1 answer:

Ira Lisetskai [31]1 year ago

5 0

Long-term assets are the term capital mean in the context of making capital expenditure decisions

Funds used by a business to purchase, improve, and maintain tangible assets including land, buildings, machinery, plants, and other property are known as capital expenditures. Capital expenditures is frequently utilized by businesses to launch new initiatives or investments. Repairing a roof (if it extends the usable life of the roof), buying equipment, or constructing a new factory are all examples of capital expenditures on fixed assets. These kinds of financial investments are made by businesses to broaden the scope of their activities or to provide some potential economic benefit.

Capital expenditures are payments made for products or services that are recorded or capitalized on a business's balance sheet as opposed to being deducted from earnings.

Learn more about Capital expenditures here

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