What are capital expenditures, and how can they help a company achieve its long-term objectives?

What are capital expenditures, and how can they help a company achieve its long-term objectives? Capital Expenditures are covered in our online lecture and in chapter 6. Capital Expenditures are budgeted each year, and the costs are recorded as assets on the balance sheet, since they are long-term in nature. An approved annual capital expenditure budget precedes a specific, written management approval to fund and commence a budgeted capital expenditure project. Many projects can be completed in the budget year, but some projects can take two or more years to complete. Lets start by discussing the basics about what capital expenditures are (examples will be appreciated!) and how these assets are different than working capital assets such as accounts receivable and inventory, and then we will separately discuss the budget process.