ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Spending by a business for day-to-day expenses
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Items owned by a business that will stay in the business for 1+ year
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Spending by a business on a fixed asset e.g. machinery
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None of the above
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Detailed explanation-1: -Capital expenditure is the sum total of all money spent to obtain, upgrade, manage, fix, or maintain physical assets of the company, such as plants, land, machinery, technology, or buildings.
Detailed explanation-2: -A capital expenditure, or Capex, is money invested by a company to acquire or upgrade fixed, physical or nonconsumable assets. Capex is primarily a one-time investment in nonconsumable assets used to maintain existing levels of operation within a company and to foster its future growth.
Detailed explanation-3: -A capital expenditure, or capex, is the purchase of long-term physical or fixed assets used in a business’s operations. Financial analysts and investors pay close attention to a company’s capital expenditures, as they do not initially appear on the income statement but can have a significant impact on cash flow.
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.