Capital Expenditures Differ from Operating Expenditures in That

question 169

Short Answer

Capital expenditures differ from operating expenditures in that
they are much smaller.
they are shorter commitments.
they are part of working capital.
they are not budgeted.
they are not normally sold or converted into cash.

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Definitions:

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or pay down the principal of a loan over time.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.