Capitalisation: Difference between revisions

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3.<br>
3.<br>
The adequacy of the amount and nature of a firm's capital, particularly when the firm is a bank.
The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank.





Revision as of 16:14, 30 May 2015

1. Financial accounting.
When a fixed asset is purchased the cost is not debited to the income statement (or profit and loss account). Instead the debit is to the balance sheet, creating an asset.


2.
The total market value of a firm's capital.


3.
The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank.


See also