--%>
Assignment Help - homework help

Describe the term Capital expenses

Describe the term Capital expenses. Also write down its formula.

E

Expert

Verified

Capital expenses are the portion of total expenditures of company that are employed for buying the fixed assets. After buying such assets, company utilizes them for production or other future advantages. All capital expenditures are illustrated in fixed assets of company's balance sheet. Such capital expenditures are also illustrated as investment in plant property and other fixed assets in the cash flow statement. We never show such expenditures in gain and loss account of company. We only display the depreciation of fixed assets that we buy via such expenditures.

Total capital expenditures = purchase price of fixed assets + expenditures for starting new business + new acquisition of assets

   Related Questions in Financial Accounting

  • Q : State Net Profit State Net Profit in

    State Net Profit in brief?

    		•
  • Q : Dimensions of Creativity What are the

    What are the dimensions of creativity in the Creative Field ?  

    		•
  • Q : Interest rate Give me answer of this

    Give me answer of this question. The prime interest rate usually: A) rises when the Federal funds rate rises. B) rises when the discount rate falls. C) falls when the Federal funds rate rises. D) falls when the Fed sells bonds in the open market

    		•
  • Q : Advanced Accounting-Consolidated

    I have worked the problem. I need to know if it is correct. If not, what I'm missing.

    		•
  • Q : Incremental cash flows of capital

    Describe what you mean by the incremental cash flows of a capital project.

    		•
  • Q : Bankruptcy A legal process that allows

    A legal process that allows a debtor, either a person or a business, to redundant some or all of the debt. The normal process involves selling asset and using the proceeds to pay off creditors in an order and/or in an amount determined by a judge. Some types of bankru

    		•
  • Q : Relative and absolute purchasing power

    Explain about the purchasing power parity, both the relative and absolute versions. List the things which results in the deviations from purchasing power parity?

    		•
  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

    		•
  • Q : Factors for surge in the international

    List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

    		•
  • Q : Case study of a global economy The

    The economic recovery is seemingly on track and in fact strengthened during the first half of 2010. The global financial market however, suffered a setback with the turmoil in sovereign debt markets leading to sharp currency movements. The extent of recovery varies ac

    		•