Topic summary
Capital expenditures
Extracted from the Wikipedia article Capital expenditure.
Usage
Capital expenditures are funds used to acquire or upgrade a company’s fixed assets, such as property, plant, and equipment (PP&E). In many companies, major capital expenditures require formal approval from the board of directors, depending on corporate governance rules or internal bylaws.” In accounting, a capital expenditure is added to an asset account, thus increasing the asset's adjusted basis (the cost or value of an asset adjusted for tax purposes). Capex is commonly found on the cash flow statement under "Investment in Property, Plant, and Equipment" or a similar line item within the investing activities section.