How do captial expenditures affect the balance sheet?
submitted by Walter Seznick

stawpit

A capital expenditure increases the value of a company's assets on the balance sheet. If they invest in a property, a warehouse, or some equipment, those costs are capitalized. that essentially means they are recorded as an asset rather than an expense. Over time, the assets are depreciated, which is the expense. Depreciation gradually reduces the asset's book value on the balance sheet.

nooope

Capital expenditures add to the assets section of the balance sheet because they're used to buy or improve long-term assets, which are valuable to the company. They don't affect the income statement right away, but they show up as assets and get depreciated later.