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Capitalized |
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Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. Capitalized In accounting, having recognized expenses on long-term liabilities over a long period of time. This allows a company to spread out its expenses so they do not appear to reduce profits at any particular time. For example, suppose a company has a $1 million profit and a $1 million loan to acquire machinery for its factory. If it does not capitalize the loan, its balance sheet will show no profit for that year. Capitalizing the loan allows the company to recognize the liability over a certain period, usually the usable life of the machinery. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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capitalization Capitalization Method capitalization rate Capitalization ratios Capitalization Table Capitalization-Weighted Index capitalize Capitalized capitalized closing costs Capitalized Interest capitalized value of future income capitalized value of property CAPM Capped Option capped-style option |
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