Explain capital expenditure with examples
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A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period. Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building) Computer equipment.
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capital :- it is a investment of a business by proprietor or owner.
example:-furiture , machineary etc
expenditure:- it is a the amount spent or liability incurred for acquring Assets ,goods,service.
example :- capital expenditure, revenue expenditure etc
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