When does the Capital expenditures occur?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When does the Capital expenditures occur?
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Capital expenditure is the money spent by business on acquiring fixed assets like land, building & equipment.
Capital expenditure increase the assets side of the balance sheet
Capital expenditure is considered to be useful for the organization for many years
Capital expenditure are the expenditure incurred for reaping benefits of many periods, hence they are capitalized ie recorded in Balance sheet.
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