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WhatsAppعرض المزيدAlthough capital expenditures are very massive, they are incurred only once in the lifespan of the organization. For example, an organization will buy a stone crusher that will be used for the entire life of the organization and can only be replaced if it is deemed as not sufficient to
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WhatsAppعرض المزيدCapital expenditure may also involve the purchase of land and buildings. It''s important to differentiate between expenditure and an expense. When a company incurs an expenditure it is not necessary that it also incurs an expense. For example, a firm may buy equipment worth 100,000. This is a capital expenditure that will result in depreciation being charged over the useful life of the asset
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