What is capital expenditure?

Answer Posted / pradeep giri

Capital expenditure is on an item that will help generate
profits over the longer term (12 months or more) so a
purchase of a machine or van etc. The item is depreciated
over the items useful life and each depreciateable amount is
charged to the Income statement in the year the item has
help generate profit.

Is This Answer Correct ?    4 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is a bad credit score?

1615


which are company offering jobs in PORTFOLIO MANAGEMENT ?

1780


ACCOUNTING CONCEPTS AND CONVENTIONS

1654


why specifically inited states ?

1375


what did you mean by cash credit limit account ?

2282






why did rbi hiked repo and reverse ratio and how it will effect the market

1380


How and by whom the Percentage of Depreciation is fixing?

1956


hi, what type of questions are asked in capital iq interview .plz let me know. thanks... venkat...

2067


Why it is necessary to use SAP in an industry? & What is the difference from other advance accounts software like Tally ERP 9? What is the importance of using GAAP for best management decission or why GAAP using by Top Management?

1599


For how long should prepayments be carried in the books as fictitious asset and when is it ideal for a new coy to pay tax

1570


what is general HR?

1631


What will your outlook towards maintenance of liquid assets to ensure that the firm has adequate cash in hand to meet its obligations at all times

2073


A company acquires new taxi fleets on 1April 2006 with intention to provide services during the World Cup period and thereafter dispose the taxis .The World Cup runs for three months to 30 June 2006.The company's year end is 30 June 2006.how do you account for taxis at initial recognition .

1497


what is purchase consideration? How does it come about and how is it treated in the books?

2049


The Closing stock balance on the cr side of Tarding Proft and Loss A/c due to this our revenue so when we isued the material or used in production then whats happen with closing stock(I think Closing Stock will dr after Isuabce/use materil in Production)if its correct tell me

1534