Capitalisation

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Revision as of 20:35, 23 October 2022 by imported>Doug Williamson (Add links.)
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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. Market value.

The total market value of a firm's capital.


3. Capital amount.

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


4. Equity.

The total market value of a listed company's equity.

Sometimes known as the 'equity market capitalisation'.


See also