Title: Capital Expenditures, Depreciation, Intangibles, and Amortization
Abstract:This chapter discusses four items of the balance sheets, which are critical importance to a company or have complex interactions with other concepts. These are capital expenditure, depreciation, intan...This chapter discusses four items of the balance sheets, which are critical importance to a company or have complex interactions with other concepts. These are capital expenditure, depreciation, intangibles, and amortization. Separate sheets must be created for these concepts so that details can be properly covered and implemented in Excel. Capital expenditure is necessary investments a company makes to keep the business operational and to further expansion. As technology develops, more and more companies operate with fewer fixed assets than traditional capital expenditures purchase. Their products are intangible items such as intellectual property, patents, and licenses. Regardless of whether money is invested in a fixed asset or an intangible, both items lose value over time. This complexity, known as depreciation for fixed assets and amortization for intangibles, necessitates rigorous technical methods to insure that the concepts are properly implemented.Read More
Publication Year: 2012
Publication Date: 2012-01-02
Language: en
Type: other
Indexed In: ['crossref']
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