Capital expenditure

This refers to spending on non current term assets.

These are non-consumable items such as property, equipment or vehicles. They do not include consumables such as employee payroll and other staff costs, supplies, utility bills; which are operating expenses. The cost of capital items is typically depreciated across their expected life in order to reflect the business’s use of these items.

Capital expenditure is a term normally found in bookkeeping, financial accounting and financial reporting.

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