Capital expenditures, as defined by Generally Accepted Accounting Principles (GAAP), are funds used by a business to acquire a new asset or to refurbish or expand an existing one. This could include tangible assets such as buildings and equipment, intangible assets such as intellectual property, or natural resources and land. In order to be considered a capital expenditure, the asset must have a useful life of over one year, and must benefit the company by generating income or cost-savings in the long-term. All capital expenditures must be recorded on a company’s balance sheet so that they can be accurately tracked over time.