Corporate Finance Question:
Download Questions PDF

Define Capital Expenditure?

Answer:

Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building, equipments which are continually used for the purpose of earning revenue. These are not meant for sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits from such expenditure are spread over several accounting years.
E.g. Interest on capital paid, Expenditure on purchase or installation of an asset, brokerage and commission paid.

Download Corporate Finance Interview Questions And Answers PDF

Previous QuestionNext Question
Define the Cash System of Accounting?Described Mercantile or Accrual System of Accounting?