• keeb420
    link
    fedilink
    -51 year ago

    Profits can go to cover capitol expenditures on your business as well. And there’s nothing wrong with that.

    • tider06
      link
      311 year ago

      Profit is what’s left of revenue after expenses are covered.

      • 👁️🫦👁️
        link
        fedilink
        21 year ago

        And capital expenditure isn’t necessarily an expense in the accounting sense. CapEx comes from previous profit

        • tider06
          link
          41 year ago

          It’s an asset charged as a fixed expense, depreciated over time. It is an expense, generally property or equipment, but still is an expense, which is defined as money spent in pursuit of revenue, which is determined before profit.