Capital expenditures are the part of total expenditures of company which are used for buying the fixed assets. After buying these assets, company uses them for production or other future benefits. All capital expenditures are shown in fixed assets of company's balance sheet. These capital expenditures are also shown as investment in plant property and other fixed assets in cash flow statement. We never show these expenditures in the profit and loss account of company. We show only the depreciation of fixed assets which we buy through these expenditures.
Total capital expenditures =
purchase price of fixed assets + expenditures for starting new business + new acquisition of assets
Total capital expenditures =
purchase price of fixed assets + expenditures for starting new business + new acquisition of assets
