Capital Expenditure for Dummies
noun
pronunciation: 'kæpɪtəl_ɪk'spɛndɪʧərWhat does Capital Expenditure really mean?
Hey there! So let's talk about capital expenditure. It might sound like a big, scary word, but it's actually pretty simple. Think of it like this - you have a piggy bank, right? When you put money into the piggy bank, you're making an investment in your future. You're spending money now to buy something that will last a long time and help you in the future. Well, that's kind of like what capital expenditure is for a company.
Capital expenditure is money that a company spends on things that will be useful for a long time, like buying new equipment, buildings, or vehicles. These are things that the company will use for many years to come to help them run their business. It's like they're making an investment in their future by spending money now on things that will help them make more money in the long run.
So, to sum it up, capital expenditure is when a company spends money on things that will be useful for a long time and help them make more money in the future. It's kind of like investing in your future with your piggy bank money. Hope that makes sense!
Capital expenditure is money that a company spends on things that will be useful for a long time, like buying new equipment, buildings, or vehicles. These are things that the company will use for many years to come to help them run their business. It's like they're making an investment in their future by spending money now on things that will help them make more money in the long run.
So, to sum it up, capital expenditure is when a company spends money on things that will be useful for a long time and help them make more money in the future. It's kind of like investing in your future with your piggy bank money. Hope that makes sense!
Revised and Fact checked by Isabella Thomas on 2023-11-13 18:47:53
Capital Expenditure In a sentece
Learn how to use Capital Expenditure inside a sentece
- A company purchasing new equipment for their factory is a capital expenditure because it will benefit the company for many years.
- Building a new store or office space is considered a capital expenditure because it involves a large amount of money and will provide long-term benefits to the business.
- Investing in research and development to create new products can be considered a capital expenditure as it is an investment in the future success of the company.
- Upgrading the computer systems in a company is a capital expenditure because it will improve the efficiency and productivity of the employees for many years.
- Purchasing land and building a new warehouse for a company is a capital expenditure because it is a long-term investment in the company's infrastructure.
Capital Expenditure Hypernyms
Words that are more generic than the original word.