CapEx has meant “expenditures” rather than “expenses.” Think major purchases like property, plant, and equipment that are used over the long term. That’s because CapEx is not expensed; rather it is depreciated over its useful life. Often Capital Expenditures are financed externally through borrowing. For your business to run smoothly and make a profit, one has to know the difference between Capital Expenditure and Operating Expenses. Find out more here.
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