capitalization

capitalization
1. The inclusion or reclassification of a cost to an *asset account. Most systems of *Generally Accepted Accounting Principles permit the capitalization of assets of a *long-term nature in the *balance sheet. For example, the costs of renovating a piece of production machinery to extend its life by more than one year can usually be capitalized into the cost of the asset. See also *betterment. 2. The market value of a corporation’s total issued *common stock.

Auditor's dictionary. 2014.

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  • capitalization — cap·i·tal·i·za·tion /ˌka pət əl ə zā shən, əl ī / n 1: the act or process of capitalizing capitalization of earnings 2: a sum resulting from a process of capitalizing; esp: paid in capital at capital ina …   Law dictionary

  • Capitalization — Cap i*tal*i*za tion, n. 1. The act or process of capitalizing. [1913 Webster] …   The Collaborative International Dictionary of English

  • capitalization — 1860, act of converting (assets) to capital, noun of action from CAPITALIZE (Cf. capitalize) in the financial sense. Meaning act of writing or printing in capital letters is recorded from 1864 …   Etymology dictionary

  • capitalization — (Amer.) cap·i·tal·i·za·tion || ‚kæpɪtÉ™laɪ zeɪʃn n. act or process or capitalizing (also capitalisation) …   English contemporary dictionary

  • capitalization — [kap′ət l ə zā′shən] n. 1. a) the act or process of converting something into capital b) the amount or sum resulting from this 2. the total capital funds of a corporation, represented by stocks, bonds, undivided profit, surplus, etc. 3. the total …   English World dictionary

  • Capitalization — This article is about capitalization in written languages, including languages other than English. For other uses, see Capitalization (disambiguation). For capitalization guidelines on Wikipedia, see Wikipedia:Manual of Style (capital letters).… …   Wikipedia

  • Capitalization — The debt and/or equity mix that fund a firm s assets. The New York Times Financial Glossary * * * capitalization cap‧i‧tal‧i‧za‧tion [ˌkəptlaɪˈzeɪʆn ǁ əˈzeɪ ] also capitalisation noun [uncountable] FINANCE 1 …   Financial and business terms

  • capitalization — (1) The process of imputing a value to an income stream by dividing the annual net income before income taxes and depreciation by a rate of return expressed as a decimal. This process is used in real estate lending and appraisals. (2) The total… …   Financial and business terms

  • capitalization — /kaepatabzeyshan/ Capitalization represents the total amount of the various securities issued by a corporation. Capitalization may include bonds, debentures, preferred and common stock and surplus. Bonds and debentures are usually carried on the… …   Black's law dictionary

  • capitalization — /kaepatabzeyshan/ Capitalization represents the total amount of the various securities issued by a corporation. Capitalization may include bonds, debentures, preferred and common stock and surplus. Bonds and debentures are usually carried on the… …   Black's law dictionary

  • Capitalization — 1. In accounting, it is where costs to acquire an asset are included in the price of the asset. 2. The sum of a corporation s stock, long term debt and retained earnings. Also known as invested capital . 3. A company s outstanding shares… …   Investment dictionary

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