The economic definition suggests that a capital expenditure is an outlay
that will produce benefits in future years, whereas a current expenditure
yields benefits for only the current year (Quirin and Wiginton 1981).3 Under
this definition, whether the capital expenditure results in the acquisition of
specific property is irrelevant. Thus, advertising expenditures made to attract
new industry to a community, which accounting practices would charge to
a current account, could be considered to be capital expenditures because
they are made to obtain benefits in future years. This is a broad conception
of capital outlay.