Capitalise: Difference between revisions
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1. ''Accounting''. | 1. ''Accounting''. | ||
To treat an item of expenditure as the purchase of an asset (rather than as an expense). | To treat an item of expenditure as the purchase of an asset (rather than as an expense). | ||
For example when a fixed asset is purchased the amount paid is not debited to the income statement (or profit and loss account). Instead the debit is to the balance sheet, creating an asset. | For example when a fixed asset is purchased the amount paid is not debited to the income statement (or profit and loss account). | ||
Instead the debit is to the balance sheet, creating an asset. | |||
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To increase the amount of capital in an organisation's capital structure, especially the amount or the proportion of equity capital. | To increase the amount of capital in an organisation's capital structure, especially the amount or the proportion of equity capital. | ||
3. ''Opportunities''. | |||
To ''capitalise on'' an opportunity means to take advantage of it. | |||
== See also == | == See also == | ||
* [[Amortise]] | * [[Amortise]] | ||
* [[Capital]] | * [[Capital]] | ||
* [[Capital expenditure]] | |||
* [[Capitalisation]] | |||
* [[Debit]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Expenditure]] | |||
* [[Expense]] | * [[Expense]] | ||
* [[Fixed assets]] | * [[Fixed assets]] | ||
* [[Opex]] | |||
* [[Re-equitisation]] | |||
* [[Research & development]] | |||
* [[Revenue expenditure]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 22:17, 14 July 2022
1. Accounting.
To treat an item of expenditure as the purchase of an asset (rather than as an expense).
For example when a fixed asset is purchased the amount paid is not debited to the income statement (or profit and loss account).
Instead the debit is to the balance sheet, creating an asset.
2. Capital structure.
To increase the amount of capital in an organisation's capital structure, especially the amount or the proportion of equity capital.
3. Opportunities.
To capitalise on an opportunity means to take advantage of it.
