0
Capital expenditure (CapEx) should be recorded as an asset on the balance sheet rather than an expense on the income statement. This involves debiting the appropriate asset account and crediting cash or Accounts Payable, depending on how the expenditure is financed. Over time, the asset is then depreciated or amortized, reflecting its usage and allocating the cost over its useful life. Proper documentation and categorization are essential for accurate financial reporting and compliance.
What else can I help you with?
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What is capital expenditure creditor?
Payable towards capital (equipments) expenditure.
What is a negative capital expenditure?
negative expenditure
What are the item's of capital expenditure and recurrent expenditure?
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
If a capital expenditure is treated as a revenue expenditure then?
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
What is the format for capital expenditure?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
What is the format for capital expenditure budget?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What is capital expenditure creditor?
Payable towards capital (equipments) expenditure.
What is a negative capital expenditure?
negative expenditure
Why capital expenditures are difference from normal day to day expenditure?
why capital expenditure are difference from normal day to day expenditure
What are the item's of capital expenditure and recurrent expenditure?
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
If a capital expenditure is treated as a revenue expenditure then?
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
What differentiates capital expenditure from revenue expenditure?
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
Can expenditure incurred for defence of title of a capital asset be treated as capital expenditure?
Introduction expenditures
Federal excise duty is a capital expenditure?
Yes, the federal exercise duty is a capital expenditure.
How should the capital assets of a capital lease be recorded in the capital projects fund?
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
