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Week 6 Short Answer Assignment

Week 6 Short Answer Assignment

Q Instructions Please, review the question below, and write a 2-3 paragraph essay, answering the question in your own words. Use any outside sources you consider relevant. Explain the concept of capital expenditures and give 2 examples.

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Capital expenditures are monies used by a corporation to acquire, improve, or maintain long-term assets to increase the firm's efficiency or capacity. Long-term assets are often tangible, fixed, and non-consumable assets with a useful life of more than one accounting period, such as property, equipment, or infrastructure (Vartiainen, 2020). Capital expenditures, often known as CAPEX or capital costs, include purchases of new equipment, machinery, land, plant, buildings, warehouses, furnishings, and fittings, business vehicles, software, or intangible assets such as a patent or license.