Comment on Google just had its first negative cash flow quarter due to massive AI spending

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ryper@lemmy.ca ⁨1⁩ ⁨week⁩ ago

Capital expenditures are for things that are expected to last a long time, like buildings and vehicles, so I guess the accounting rules around them are meant to allow the costs to be realized over a similarly long time. The idea is probably that companies would be less likely to invest in capital if it meant taking a big hit all at once. But I’m not an accountant.

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