Final answer:
Capital expenditure is recorded as an asset on the balance sheet under fixed assets. It includes purchases of physical plant and equipment by businesses such as machinery, buildings, vehicles, and computer systems.
Step-by-step explanation:
Capital expenditure, which refers to the money invested in purchasing physical plant and equipment primarily by businesses, is recorded as an asset on the balance sheet. It is considered a long-term investment and falls under the category of fixed assets. Examples of capital expenditures include the purchase of machinery, buildings, vehicles, and computer systems.