capital expenditure

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Capital Expenditure

Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures are used to acquire assets or improve the useful life of existing assets. An example of a capital expenditure is the funding to construct a factory. In accounting, capital expenditures must be capitalized; that is, the expenditure is recognized on a balance sheet gradually over the course of an asset's useful life. Capital expenditures are recorded as liabilities on a balance sheet. They are also called capital outlays. See also: Capital asset.

capital expenditure

Funds used to acquire a long-term asset. A capital expenditure results in depreciation deductions over the life of the acquired asset. Also called capital outlay.

capital expenditure

expenditure on the acquisition or improvement of FIXED ASSETS that is subsequently written off against profits over several ACCOUNTING PERIODS. Contrast with REVENUE EXPENDITURE. See INVESTMENT, CAPITAL BUDGETING.

capital expenditure

see INVESTMENT.

capital expenditure

Money spent on capital improvements,being those that change the nature of property, extend its useful life, or otherwise improve it beyond the natural improvement to be expected with routine repairs and maintenance.This is an important concept because capital expenditures must be added to the basis and depreciated slowly over time,while noncapital expenditures for repairs may be deducted entirely in the current year on one's taxes.

Capital Expenditure

An expenditure made for an asset with a useful life of more than one year that increases the value of or extends the useful life of the asset. Capital expenditures generally may not be deducted in the year they are paid, even if they are paid in connection with a trade or business. In other words, they are capitalized and generally may be depreciated or amortized.
References in periodicals archive ?
The rental program is similar to PAETEC's Equipment for Services option that can reduce or even eliminate a customer's capital expense for equipment as part of a network-services contract.
Reduced capital expenses, resulting in the ability to quickly introduce new revenue-generating services to the marketplace
In an attempt to reduce its capital expenses, the American Red Cross sought new telecommunications providers and chose SBC companies.
Tax revenues fund GO bond debt service and a portion of capital expenses under a contract with the California Department of Water Resources.
With projected capital expenses of US$60 million, taxes of about US$20 million and net interest expense of less than US$10 million, CCU should have at least US$80 million of free cash flow that could be used for debt reduction or dividends.
These trends represent value for the customer, by reducing both operating and capital expenses while addressing some of the headache associated with managing networked storage.