Accountancy, asked by simranpant9, 1 year ago

what is the reasons that the capital expenditures is shown in the balance sheet?

Answers

Answered by Khushboojha1625
15

Answer :

Capital expenditure is shown in the balance sheet because a capital expenditure is considered as investment in a given company, it should be recorded as an asset on the company's balance sheet. It should then be deducted over the course of multiple years as a depreciation expense starting in the year following year of purchase.

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