What is a difference between an expense and capital expenditure?

An expense is recorded immediately and it effect directly the income statement , reducing its net profit. But a capital expenditure is capitalized, recorded as an asset and depreciated.

An expense is reported on the income statement. An expense is a cost that has expired, was used up, or was necessary in order to earn the revenues during the time period indicated in the heading of the income statement. For example, the cost of the goods that were sold during the period are considered to be expenses along with other expenses such as advertising, salaries, interest, commissions, rent, and so on.An expenditure is a payment or disbursement. The expenditure may be for the purchase of an asset, a reduction of a liability, a distribution to the owners, or it could be an expense. For instance, an expenditure to eliminate a liability is not an expense, while expenditures for advertising, salaries, etc. will likely be recorded immediately as expenses.Here's another example to illustrate the difference between an expense and an expenditure. A company makes an expenditure of $255,500 to purchase equipment. The expenditure occurs on a single day and the equipment is placed in service. Assuming the equipment will be used for seven years, under the straight line method of depreciation the cost of the equipment will be reported as depreciation expense of $100 per day for the next 2,555 days (7 years of service with 365 days each year).

What are Capital Expenditures?

When businesses borrow funds or reinvest their profits on capital investments, hoping to improve future operations, they are likely incurring capital expenses that are included in CAPEX. Funds devoted to CAPEX acquire, upgrade or fix physical assets such as plants, equipment or other property. One of the defining features of a capital expenditure is longevity; if it benefits the company for longer than one tax year, it is likely to be included with CAPEX.

Some examples of non-physical CAPEX items might include patents or other assets that can have costs spread over a useful life. There are exceptions based on individual industries or sectors, however.

CAPEX can be externally financed, which is usually done through collateral or debt financing. Companies issue bonds, take out loans or use other debt instruments to increase their capital investment. Shareholders who receive dividend payments pay close attention to CAPEX numbers, looking for a company that pays out income while continuing to improve prospects for future profit.

An operating expense (OPEX) is an expense required for the day-to-day functioning of a business. In contrast, a capital expense (CAPEX) is an expense that a business incurs to create a benefit in the future. OPEX and CAPEX are treated quite differently for accounting and tax purposes. A capital expenditure is incurred when a business expends money, collateral or debt financing on either buying a new asset or adding to the value of an existing asset with the expectation of receiving benefits for longer than a single tax year. Essentially, a capital expenditure represents an investment in the business. Examples of capital expenses include the purchase of fixed assets, such as new buildings or business equipment, upgrades to existing facilities and the acquisition of intangible assets, such as patents. Operational expenses, on the other hand, are expenses incurred during the course of regular business, such as general and administrative expenses, research and development, and the cost of goods sold. OPEX covers a wide range of expense types, running the gamut from office supplies to travel and distribution expenses, licensing fees, utilities, property insurance and property taxes, for example. If equipment is leased instead of purchased, it is typically considered an operating expense. General repairs and maintenance of existing fixed assets such as buildings and equipment are also regarded as OPEX, unless the improvements will increase the useful life of the asset. Another difference between operating expense and capital expense can be found in how the two types of expenses are treated for accounting and income tax purposes. OPEX are expensed on an income statement immediately and are fully deductible. CAPEX, however, are either depreciated, in the case of fixed assets, or amortized, in the case of intangible assets, over their lifetime. In running its business, a company sometimes has a choice in whether to incur an operating expense or a capital expense. For example, if a company needs more storage space for housing its data, it can either invest in new data storage devices as a capital expense or lease space in a data center as an operational expense. Read more: What is the difference between an operating expense and a capital expense? | Investopedia http://www.investopedia.com/ask/answers/042415/what-difference-between-operating-expense-and-capital-expense.asp#ixzz4CMN6eifF Follow us: Investopedia on Facebook

Expenses are charge off in P/L in the period in which they incurred, whereas capital expenditure are capitalized and recorded as a balance sheet item.

simple differ

expenses fuly deduct from profil monthly or yearly it depends on the nature of business

&

capital expenditure deduct from profit monthly or yearly not at one time it may finish after 5 years

An expense recognized means that future benefits associated with the expenditure can no longer flow to the entity and be realized in more than one period. While a capital expenditure recognized means that the expenditure is to be recorded as an asset since future economic benefits will still flow and can still be realized for more than one accounting period.

LE   CAPITAL EST LA  POUR  LES SOLUTION D'INVESTISSEMENT PAS LE DEPENSER