Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Why do capital expenditures increase assets (PP&E), while other cash outflows do not?

user-image
Question ajoutée par Utilisateur supprimé
Date de publication: 2014/09/02
Sumanggibo Tagol
par Sumanggibo Tagol , Accountant , Al Ghurair Energy DMCC

Capital expenditures are cash outflows for acquisition of capitalizable assets like buildings, land, office equipments, furniture & fixtures which are classified in the line item of "Property, Plant, & ,Equiment" in the balance sheet  hence, it increases "property plant and equipment" while other cash outflows may refer to expenses such as payments for rents and utilities.

Saleh Al-kasrawi
par Saleh Al-kasrawi , general accountant , Dayton consulting L.L.C

since capital expenditure are capitalized and depreciated in systematic manner way while there is another kinds of expenditures ,that are disclosed as expenses as they occur to generate revenue < review cpa excel review

to be more precise we capitalize expenses when their benefits well be gained in further periods and for several periods

so they increase the PP&E 

More Questions Like This