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this post was submitted on 24 Jul 2026
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Technology
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Why can they spend money now, but make it so on paper it’s as if they spent it next quarter?
Capital expenditures are for things that are expected to last a long time, like buildings and vehicles, so I guess the accounting rules around them are meant to allow the costs to be realized over a similarly long time. The idea is probably that companies would be less likely to invest in capital if it meant taking a big hit all at once. But I'm not an accountant.