Friday, April 24, 2015

What is the difference between infrastructure and capital goods?

What is the difference between infrastructure and capital goods?
Infrastructure typically refers to core components of something - most commonly associated with streets, water systems, etc...Capital Goods is a slang term for Fixed Assets (Which is alos what Infrastructure Assets happen to be).Technically, there is no difference as they are both Fixed Assets of an entity. The type of entity will tell you the degree to which the terms "Infrastructure" and "Capital Goods" or correctly or incorrectly being used. For example, you would normal see Infrastructure Assets listed on the balance sheet of a Municipality / City / Town / State, etc. You will not see "Capital Assets" on a correctly prepared balance sheet in the United States because jargon / slang teminology is not acceptable by the governing bodies.... and us CPA's are anal enough to wince when we see stuff like that, lol.

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