Capitalise

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Revision as of 04:57, 3 August 2013 by imported>Doug Williamson (Spacing)
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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.

See also