Capital Expenditure
/ˈkæpɪtl ˌɛkspɛnˈdɪtʃər/
Definitions
- (n.) Funds spent by an organization to acquire or upgrade physical assets such as property, industrial buildings, or equipment, intended to benefit the entity over the long term.
The company recorded the purchase of new machinery as a capital expenditure.
- (n.) Expenditure that is capitalized rather than expensed immediately for accounting and tax purposes, affecting depreciation schedules and financial reporting.
Capital expenditures are added to the asset value on the balance sheet rather than deducted as expenses.
Forms
- capital expenditures
Related terms
See also
Commentary
Capital expenditure is a key concept in corporate law and tax law, crucial for financial statement classification and regulatory compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.