A captial expense (which really shouldn't be called an expense, instead should be called an investment) pays for things which are expected to give you a return on your investment. For example, a trolley car can be used to pick up passengers who pay fares, and later sold off for a portion of the initial investment.
An operating expense is money that you'll never see again, because it pays for things like wages, benefits and materials that get used up.
This is a basic accounting concept that applies whether you're analyzing a transit agency's budget, a publicly-trade corporation, or your own tax return for the IRS. In fact, the IRS provides publications which explain these standard accounting rules.
An operating expense is money that you'll never see again, because it pays for things like wages, benefits and materials that get used up.
This is a basic accounting concept that applies whether you're analyzing a transit agency's budget, a publicly-trade corporation, or your own tax return for the IRS. In fact, the IRS provides publications which explain these standard accounting rules.
