Capex vs Opex
Also called: capital expenditure, operating expenditure, capitalisation
Capex buys assets that last beyond a year and is spread across the income statement through depreciation; opex hits profit immediately. Where the line falls is a judgement with real consequences: capitalising costs that should be expensed inflates current profit and is a recurring feature of accounting scandals, WorldCom being the largest. Cash flow is unaffected by the choice, which is why cash-based analysis is harder to game.
Where this is taught
Definitions are the trailer. These free levels turn Capex vs Opex into something you play — one bite-size lesson, with worked examples, a quiz and XP.