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Calculat capital expenditure, How to define Capital expenditure
This is kind of expenditure on fixed assets like as plant or equipment, the cost of which is spread over several accounting periods through process of depreciation. The cost of the fixed assets or you can say less the depreciation accumulated to date is "capitalised" in the balance sheet. The depreciation charged each year is a cost in the loss and profit account.
You may just be wondering as to see that how we control activities by ratios. The answer is not tough to seek. Ratios we have known for control of activities measures relationships
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calculation
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