CAPEX - Capital Expenditure

Formal

Stands for ‘Capital Expenditure’ Costs of acquiring long term assets that are material and have long term value, eg Motor Cars, Machinery, Land and Buildings Costs of these assets are charged against the profits of a business over a long period of time because of longer use/value.

Straight Talk

‘Capital Expenditure’ on items with a long and useful business life, eg cars, buildings WARNING Further enquiry into this topic is quite interesting. Should I own or rent? On or Off Balance sheet? - this is the starting point of a real interest in finance! Go and have a lie down.

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