Register now or log in to join your professional community.
Outflows(cash) for Capital Expenses bring into existence capital assets, whereas revenue outflows (cash)donot bring into existence anlother asset..
Any expenditure related to an items which can be used for many years is termed as Asset of the concern.For property plant and equipment. Therefore the purchasing of PP&E is considered as capital expendiute and it is capitalized over the year.
While expenses like salaries and taxes,wages, utilities expenses are being incurred for a specific accounting period to support operational activities. Thats why these expenses do not create any asset.