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(TCO H) Explain the difference between capital outlay and a capital project, and provide examples of...

(TCO H) Explain the difference between capital outlay and a capital project, and provide examples of the types of assets that relate to each.

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Answer #1

Capital Outlay  

It is amount that spend to purchase fixed asset or to extend useful life of asset .It is capital expenditure i.e shown in balance sheet .This expenditure gradually apportioned over useful life of asset in form of depreciation.

For example - Purchase of plant, Equipment

Capital Project

It is long term investment with purpose of build, improve infrastructure facilities .This investment is made to accelerate growth.

For example - Dams, Railway, Power plant

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