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Questions
Define Capital expenditure.
What is meant by the term Capital Expenditure?
What is Capital Expenditure?
Solution
- Capital expenditure refers to the amount spent by a company on long-term assets, enhancing their working capacity, increasing their lifespan, generating future cash flows, or lowering production costs.
- Large expenditures are capitalised and distributed throughout the asset's useful life.
Notes
Students should refer to the answer according to their questions.
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