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What is a capital expenditure in company?

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posted Mar 1, 2016 by Abhishek Maheshwari

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1 Answer

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Capital Expenditure or Capex is any large expenditure of the company. The CAPEX is realized over a long period of time & usually are divided in the P&L for the expected useful life of the Asset bought by CAPEX. If the CAPEX is included at one go in the company, the company will incur big loss in their books, so in order to avoid that Depreciation was introduced.

answer Apr 15, 2016 by Shekhar Yadav
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