Economics 101

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Capital expenditures (CapEx) are long-term investments in physical assets like property or equipment, capitalized on the balance sheet and depreciated over time. Operating expenses (OpEx), on the other hand, are day-to-day costs like rent and salaries, fully deducted in the period they occur. The key difference lies in their purpose and accounting: CapEx drives future growth, while OpEx supports daily operations. Learn more at the link in our bio.

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Capital expenditures (CapEx) are long-term investments in physical assets like property or equipment, capitalized on the balance sheet and depreciated over time. Operating expenses (OpEx), on the other hand, are day-to-day costs like rent and salaries, fully deducted in the period they occur. The key difference lies in their purpose and accounting: CapEx drives future growth, while OpEx supports daily operations. Learn more at the link in our bio.

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General Journal is the first phase of accounting where all the transactions are recorded originally in chronological order.

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