Profits can go to cover capitol expenditures on your business as well. And there's nothing wrong with that.
Profit is what's left of revenue after expenses are covered.
And capital expenditure isn't necessarily an expense in the accounting sense. CapEx comes from previous profit
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.
Profits can go to cover capitol expenditures on your business as well. And there's nothing wrong with that.
Profit is what's left of revenue after expenses are covered.
And capital expenditure isn't necessarily an expense in the accounting sense. CapEx comes from previous profit
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.