Capitalise: Difference between revisions
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imported>Doug Williamson m (Spacing) |
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''Accounting''. | ''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. | ||
== See also == | == See also == | ||
* [[Fixed assets]] | * [[Fixed assets]] | ||
Revision as of 04:57, 3 August 2013
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.
