Capitalisation: Difference between revisions
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imported>Doug Williamson (Layout.) |
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''Financial accounting''. | |||
''Financial accounting''. | |||
When a fixed asset is purchased the cost is not debited to the income statement (or profit and loss account). | When a fixed asset is purchased the cost is not debited to the income statement (or profit and loss account). | ||
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2. | 2. | ||
The total market value of a firm's capital. | The total market value of a firm's capital. | ||
3. | 3. | ||
The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank. | The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank. | ||
4. | 4. | ||
The total market value of a listed company's equity. Sometimes known as the 'equity market capitalisation'. | The total market value of a listed company's equity. Sometimes known as the 'equity market capitalisation'. | ||
Revision as of 10:59, 28 November 2017
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'.
