# Capital expenditure

> 간단한 설명:

간단한 설명:

> A capital expenditure is the purchase of an item that's considered a long-term investment, such as computer systems and equipment. Most companies follow the rule that any purchase over certain dollar amount counts as a capital expenditure, while anything less is an operating expense. [Operating expenses](https://wiki.g15e.com/pages/Operating%20expense.txt) show up on the [income statement](https://wiki.g15e.com/pages/Income%20statement.txt) and thus reduce <profit>. Capital expenditures show up on the [balance sheet](https://wiki.g15e.com/pages/Balance%20sheet.txt); only the [depreciation](https://wiki.g15e.com/pages/Depreciation.txt) of a piece of capital equipment appears on the income statement. --p28, [Financial intelligence for entrepreneurs](https://wiki.g15e.com/pages/Financial%20intelligence%20for%20entrepreneurs.txt)