Reference Entry

capital expenditure

Jonathan Law

in A Dictionary of Finance and Banking

Sixth edition

Published in print March 2018 | ISBN: 9780198789741
Published online March 2018 | e-ISBN: 9780191831430
capital expenditure

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The expenditure by an organization of a significant amount for the purchase or improvement of a *fixed asset; the amount expended would warrant the item being depreciated over an estimated useful life of a reasonably extended period. Capital expenditure is not charged against the profits of the organization when it takes place, but is regarded as an investment to be capitalized in the ...

Reference Entry.  106 words. 

Subjects: Banking ; Social Sciences ; Economics

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