What Is a Cash Flow to Capital Expenditures?

Capital expenditure, also known as capital expenditure, refers to an enterprise's purchase of fixed assets, intangible assets, and related loan interest expenses. This part of the expenditure is reflected in the cash flow statement as cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets.

Capital expenditure

discuss

Capital expenditure, also known as capital expenditure, refers to an enterprise's purchase of fixed assets, intangible assets, and related loan interest expenses. This part of the expenditure is reflected in the cash flow statement as cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets.

Capital expenditures are expenditures that benefit many accounting periods and are credited to the asset account or prepayment account when incurred. Such as the purchase of fixed assets, and the increase in the value of existing fixed assets.

Chinese name

Capital expenditure

Foreign name

capital expenditure

Corresponding

Enterprise purchase of fixed assets

Object

Purchase and construction of fixed assets, intangible assets

Also known as

Capital expenditure

form

1. Cash recovery for cash purchases or long-term asset disposal,

2. Obtain long-term assets by issuing non-cash transactions such as bonds or stocks,

3. Acquire long-term assets through corporate mergers and acquisitions.

Among them, the entity is the capital expenditure of cash purchase or cash recovery of long-term asset disposal.

The cash flows from investment activities section of the current cash flow statement has listed cash paid for purchasing, constructing fixed, intangible and other long-term assets, and cash recovered from disposal of fixed, intangible and other long-term assets Net cash. "

Therefore: Capital expenditure = cash paid for the purchase of fixed, intangible and other long-term assets net cash recovered from disposal of fixed, intangible and other long-term assets