--%>
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 : Define Intangible assets Intangible

    Intangible assets: It is the asset that is not visible however we can feel them. The main examples of these assets are goodwill, patent and trade marks.

    		•
  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

    		•
  • Q : Firm Overview Midterm Project The

    Midterm Project The Midterm Project has two parts. First, using the fact pattern below, develop a list of five to eight goals for the law firm. A goal

    		•
  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

    		•
  • Q : MIS reports What are MIS reports and do

    What are MIS reports and do you made it?

    		•
  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

    		•
  • Q : Vernon’s product life-cycle theory of

    Discuss the Vernon’s product life-cycle theory of the FDI. Specify the strength and weakness of theory?

    		•
  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

    		•
  • Q : Meaning of Goodwill Meaning of Goodwill

    Meaning of Goodwill: Goodwill puts the association at a good position due to which the organization is capable to earn huge profits without any additional efforts. Goodwill can’t be seen although felt. Thus goodwill is termed as an Intangible as

    		•
  • Q : Who is a debtor Who is a debtor ?

    Who is a debtor? Briefly explain the term.

    		•