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 top 5 percent of hospitals had capital costs greater than $1,102, which is 27 percent of the mean operating cost but only 16 percent of the 95th percentile operating cost ($6,890).
Assessment of electricity costs for different technologies in terms of the two fundamental yardsticks used for cost comparison, capital cost and the levelized cost of electricity.
The low capital cost of the GE electrolyzer would make it competitive with other hydrogen production methods such as natural gas reforming.
Since the restructured rental reflects the elimination of substantial capital costs, it will remain lower than the market rate for this space, or for equivalent space in other properties, throughout the term of the new lease, unless there is a major downturn in market conditions.
The net proceeds of these bonds will be held by the LDFA to pay the capital costs of the area-wide groundwater cleanup facility.
The September 1992 distribution amount was negatively impacted by capital costs incurred in connection with the successful recompletion of a gas well on West Cameron Block 215.
After August 1, 2006, Enterprise and TEPPCO will equally share the capital costs of the Phase V expansion.
That "saved" energy is then sold to other customers at a rate that offsets the capital costs of the project.
This month's distribution increased from the prior month due primarily to increased gas production, and lower capital costs.
The agency directly benefits from its high water quality, which significantly limits its ongoing and capital costs related to purification systems.
0% on approximately 80% of the capital costs is not included in the current or previous capital cost estimates as it is expected to be exonerated and/or recovered pursuant to Venezuelan tax regulations.

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