CAPITAL EXPENDITURE Definition

Bookmark and Share

CAPITAL EXPENDITURE (CAPEX) is the amount used during a particular period to acquire or improve long-term assets such as property, plant or equipment.

Learn new Accounting Terms

GROSS SURPLUS RATIO measures the margin on each dollar of operating revenue for the entity in question. The operating results before interest and depreciation, or gross surplus, are calculated as a percentage of total operating revenue. The gross surplus ratio shows the gross surplus as a percentage of the entitys turnover. If the percentage is high this could be interpreted as a sign that the entity is operating efficiently.

SHORT-TERM usually encompasses a calendar of 12 months or less.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.