A capital asset (fixed asset) is an asset that is expected to be used for a considerable time in a trade or business. Examples of capital assets in most businesses are land and buildings, plant and machinery, investments in subsidiary companies, goodwill, and motor vehicles, although in the hands of dealers these assets would become current assets. The costs of these assets are normally written off against profits over their expected useful life spans by deducting an item for depreciation from their book value each year. Research Capital Asset
Capital expenditure is expenditure on capital assets. Capital expenditure is not deducted from profits, as an asset is acquired rather than a loss being made. However, as a capital asset loses value by depreciation, the amount of the depreciation is charged against profit. Research Capital Expenditure
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
Research Capital Asset
