Finimpact

Conclusion

Pieces of capital equipment are the important, expensive pieces of machinery and tools that make a business run. They’re a major investment, but essential for your company to produce a profit. When acquiring capital equipment for your company, consider both equipment financing and leasing options and decide which is right for you.

FAQ

What are capital goods? How are they different from capital equipment?
Capital goods are the goods used to produce the products or services you sell to consumers. Capital equipment is heavy-duty, long-lasting, expensive equipment used to run your company.
Where does capital equipment appear on the balance sheet?
Capital equipment usually shows up on a company’s balance sheet as an asset, such as tangible assets, or property, plant, & equipment.
Are laptops and software considered capital equipment?
Depending on your type of business and their cost, laptops and their software can be considered pieces of capital equipment that must be reported on your balance sheet as such.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me

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