ECONOMICS

Detailed explanation-1: -Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.

Detailed explanation-2: -Deferred revenue expenditure appears in balance sheet at assets side under the heading.

Detailed explanation-3: -Capital Expenditure is the amount of money that a company spends on acquiring new assets. Capital expenditure is the amount a company pays to acquire or upgrade long-term assets such as property, plant and equipment. The cash spent on purchasing these assets is recorded as an expense in the incurred period.

Detailed explanation-4: -Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.

Detailed explanation-5: -Unlike operating expenses, which are recorded on your income statement, capital expenditures are always recorded as an investment on your balance sheet and will also appear on your cash flow statement under the investing activities section.