Capital expenditures are expenditures that increase the company's investment in productive facilities.

Question

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Capital expenditures involve investing in long-term assets such as equipment, real estate, or factories that are expected to generate revenue for the company over a period of time. These expenditures are expected to increase the company's capacity or efficiency, and are not meant for day-to-day operational expenses.

Capital Expenditures Are Expenditures That Increase the Company's Investment in Productive