Meaning of Capital Expenditure

Any expenditure which is incurred in acquiring or increasing the value of a fixed asset is termed as capital expenditure. As such, the amount spent on the purchase of land and building, plant and machinery, furniture, etc. is capital expenditure. Such expenditure yields benefit over a long period and hence is written in assets. Capital expenditures are non-recurring in nature. Recurrent expenditure are those expenditure which occur again and again after some time. As capital expenditure are high valued expenditure and they don’t occur frequently. That is why, capital expenditure are non-recurrent expenditure.