• keeb420
    link
    fedilink
    -510 months ago

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

    • tider06
      link
      fedilink
      3110 months ago

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

      • 👁️🫦👁️
        link
        fedilink
        210 months ago

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

        • tider06
          link
          fedilink
          410 months 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.