Capital expenditure

Topic

Capital expenditure (abbreviated as capex or CapEx) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when funds are spent to purchase a new asset or to extend the useful life of existing assets, such as major structural repairs or upgrades. Unlike operating expenses, capital expenditures are capitalized on the balance sheet and depreciated over their useful life.