Testing why do capital expenditures increase assets ppe, Accounting Basics

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Testing why do capital expenditures increase assets ppe

Question: Testing Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?

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Accounting Basics: Testing why do capital expenditures increase assets ppe

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