Capitalisation: Difference between revisions
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1. ''Financial accounting.'' <br> | 1. <br> | ||
''Financial accounting.'' <br> | |||
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. | 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. | ||
Revision as of 10:58, 11 May 2016
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.
4.
The total market value of a listed company's equity. Sometimes known as the 'equity market capitalisation'.
