{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

It took the business to see a return in 28 years it

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
even point and seen a full return on the investment, plus more. It took the business to see a return in 2.8 years. It is important that capital budget be kept separate from expense budget. This is because an expense budget is subtracted from the direct revenue. An expense budget would include items such as basic office supplies (paper, stapler, notepads, etc.), items that would not be considered assets, whereas a capital budget would include items that provide for the business on a long term and could be considered assets, such as computers. Capital budget items would continue to show on a company’s balance sheet as items that still have value for long periods of time. Expense budget items have a short term value, which are shown a cost to the company (Merritt, n.d.). References Merritt, C. (n.d.). Operating Expenditure vs. Capital Expenditure. eHow. Retrieved from http://www.ehow.com/info_8007447_operating-expenditure-vs-capital-expenditure.html Curinga, K. (n.d.). How to Prepare a Capital Budget. Small Business Chronicle. Retrieved from http://smallbusiness.chron.com/prepare-capital-budget-46633.html Capital (n.d.). Investopedia. Retrieved from http://www.investopedia.com/terms/c/capital.asp#axzz2MnuXCJEZ
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}