The-definition.com

Definition

Capital expenditures

Capital expenditures refer to the expenditures that increase the operating efficiency, productive capacity, or useful life of a plant asset. These are also referred to as Additions and improvements.

They are usually material in amount and occur infrequently. Additions and improvements increase the company’s investment in productive facilities. Companies generally debit these amounts to the plant asset affected. Most major U.S. corporations disclose annual capital expenditures.

Share it:  Cite

More from this Section

  • Horizontal analysis
    Horizontal analysis, also called trend analysis, is a technique for evaluating a series ...
  • Money market accounts
    Money market accounts mean deposits that earn interest rates very competitive with those ...
  • Manufacturing Overhead Costs
    A company has many types of overhead costs. It may recognize these costs daily, as in ...
  • Index number
    Index number is a quantitative device that condenses or summarizes a body of data with ...
  • Trial balance
    A trial balance is a list of accounts and their balances at a given time. Customarily, ...