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<p>What do these letters stand fore and when is a CAPEX used? Who is using a CAPEX or why is it used?</p>
Capex stands for Capital Expenditures. As opposed to Operating Expenses, capex are capitalized. There are criteria to be considered to capitalize expenditures such as those criteria in Capital assets and where the repairs and maintenance are made in an asset, it should not be an ordinary and recurring repair, it should extend the life of the asset, it must improve efficiency of the asset, it could increase production capacity, replacement of a major part of an asset, etc. It is important to properly categorize expenditures into capital or operating as it has great impact in the results of operation (Income statement) in the period it was incurred.
Capital expenses are those expenses that are spent to increase the production capacity of the asset and contribute to the achievement of revenue and crumpled to more than one financial year as buying fixed assets or the purchase of spare parts for a particular origin and Akomen capital expenditure to balance the budget in the body.
CAPEX: CAPITAL EXPENDITURE IN ACCOUNTING.
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.
A capital expenditure (Capex) is money invested by a company to acquire or upgrade fixed, physical, non-consumable assets, such as buildings and equipment or a new business.
Capex is money spent with the intent of initiating future cash flow and a substantial ROI.
CapEx stands for Capital Expenditure. Capex are those money or fund a company uses for acquiring or upgrading a non current asset, may be any property, equipment, or a plant- building a factory for example! they can be tangible like, a factory, or may be intangible like, the expenditure for a tv advertisement that a company is planning to use for, say4 years!
as it is seen, capex is used for aquiring or upgrading a non current asset, may be tangible or intangible. usually u will find a capex in "cash flow statement" under "property, plant, and equipment."
CAPEX stands for Capital Expenditure.Its money spent for acquiring or updating our physical assets such as machinery,buildings etc and most of the companies has to spent largely on capital expenditures. capex is widely used in manufacturing concern to increase their productivity and efficiency. It can be also said as capital spending.
Thanks for the invitation
Good question
Agreed with both answers given by
Mr.:Vrindavan & Mss.:Lanag as well too
Capital expenditure: Is the purchase of fixed assets (machinery and equipment ... etc), and spending on business investment, the purchase of any other institution, as well as spending on current assets such as raw materials, fuel and other expenses .
This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.
We must differentiate between capital expenditure and capital formation.
A capital expenditure (CAPEX) is defined as an expenditure contributing value to the property and equipment of a business. It is an expenditure toward capital assets, as contrasted with spending that covers operating expenses (OPEX) or purchase of investments unrelated to business.
capital expenditures are such expenses which occurred to buy fix assets or adding value in fix assets.
