Concept explainers
Capital Assets: Capital assets are the assets to be held for business purpose for longer maturities with the intention of not to sale them in future, but to generate revenue through them such as property, plant, and equipment etc.
Capital Investments: Capital investments are the amount spends to generate capital assets with the intention to use them for longer duration and not to sell them in near future.
Capital Budgeting: Capital budgeting is the process to determine the large investment on new projects and to determine whether an investment is worthy enough for new projects or in other words if a project can generate sufficient revenue on its investment.
To indicate: The difference between capital assets, capital investments, and capital budgeting.
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Horngren's Accounting, Student Value Edition (12th Edition)
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