Definition

Print Page Print Page        E-mail Page Email Page        RSS Feeds RSS        E-mail Alerts Email Alerts        Financial Tear Sheet Tear Sheet
<< Back
Purchase of Fixed Assets
Purchase of Fixed Assets is commonly referred to as Capital Expenditures. Capital Expenditures encompass all expenditures for factories and equipment that have a useful life of more than one year. These expenditures are not treated as an expense on the income statement when they are incurred. Rather, they are capitalized, meaning that they are expensed over time.