Capitalization dictionary definition

Capitalize definition

Names of capitalization styles

What is capitalization and examples?

The definition of capitalization refers to writing in uppercase letters, or the total invested in a business or the total value of stocks and bonds of a corporation. If the total value of all outstanding shares of stock is $100,000, this is an example of a company’s capitalization.

This account accumulates all expenses that are intended to be long-term assets, but they have not yet been put into use, and therefore cannot yet be capitalized. In accounting, capitalization refers to the process of expensing the costs of attaining an asset over the life of the asset, rather than the period the expense was incurred. Rather than listing the asset as an expense, the asset is added to the company’s balance sheet and depreciated over its useful life. Another aspect of capitalization refers to the company’s capital structure.

Other languages may capitalize the initial letter of the orthographic word, even if it is not present in the base, as with definite nouns in Maltese that start with certain consonant clusters. For example, l-Istati Uniti (the United States) capitalize the epenthetic I, even though the base form of the word — without the definite articleторговые+платформы — is stati. Both letters are capitalized even though they are printed separately when using a computer, as in IJsselmeer. In the past the digraph was written as Y, and this still survives in some surnames. In most languages that use diacritics, these are treated the same way in uppercase whether the text is capitalized or all-uppercase.

In other European languages, it is much more common for the article to be treated as integral to the name, but it may not be capitalized (die Schweiz, les Pays-Bas, yr Almaen, etc.). In accounting, capitalization refers to recording costs as assets on the balance sheet instead of as expenses on the income statement. A company may record the purchase Capitalize definition price of an asset, as well as the asset’s acquisition costs, such as transportation and setup, as assets on the balance sheet. Proper nouns, key words in titles, the pronoun I, and beginnings of sentences are generally capitalized. However, certain conventions for capitalizing words, names, and titles vary from one style guide to another.

Definition of capitalize in English:

Capitalize definition

What does it mean to capitalize something?

An item is capitalized when it is recorded as an asset, rather than an expense. This means that the expenditure will appear in the balance sheet, rather than the income statement. You would normally capitalize an expenditure when it meets both of these criteria: Exceeds capitalization limit.

The estimated useful life of the furniture, as defined by the company policy, and IRS tax code, is 7 years. So, how much expense do you think the company should recognize each month?

  • However, in the polytonic orthography used for Greek prior to 1982, accents were omitted in all-uppercase words, but kept as part of an uppercase initial (written before rather than above the letter).
  • For example, a local mom and pop store may have a $500 capitalization threshold, while a global technology company may set their capitalization threshold at $10,000.
  • On the balance sheet, it will appear as a long-term asset and cash debit.
  • Its cost will be depreciated over the printer’s useful life.


Capitalization can refer to the book value cost of capital, which is the sum of a company’s long-term debt, stock, and retained earnings. The market value cost of capital depends on the price of the company’s stock.

The Difference Between Successful-Efforts and Full-Cost Accounting

After installation of the furniture, the office is ready to go! The assets have been put into use, and the accountant can capitalize the $84,000 cost of furniture into long-term assets on the company’s balance sheet.

They may be always preserved (as in German) or always omitted (as in Greek) or often omitted (as in French). This style can be used for headlines and book or chapterброкер+криптовалют&oq=брокер+криптовалют&gs_l=psy-ab.3..0l2j0i22i30l8.1204.1204..1492…0.1..……0….2j1..gws-wiz…….0i71.7rIrCMvqk1w&ved=0ahUKEwi8ucjRxpnmAhUxxKYKHRBPDHIQ4dUDCAo&uact=5 titles at the top of a book page. It is commonly used in transcribed speech to indicate that a person is shouting, or to indicate a hectoring and obnoxious speaker.

It is calculated by multiplying the price of the company’s shares by the number of shares outstanding in the market. A capitalized cost is an expense that is added to the cost basis of a fixed asset on a company’s balance sheet. To capitalizeПоиск&qs=n&form=QBRE&sp=-1&pq=retained+earnings+balance+sheet&sc=6-31&sk=&cvid=200DDC133061469A95C05557EB7F18B9 is to record a cost/expense on the balance sheet for the purposes of delaying full recognition of the expense. In general, capitalizing expenses is beneficial as companies acquiring new assets with long-term lifespans can amortize the costs.

Capitalize definition

The answer is $1,000 per month, or ($84,000 cost ÷ 7 years) ÷ 12 months. This straight line calculation of the capitalized cost will ensure the company recognizes an appropriate amount of depreciation expense each year, no matter what month the furniture was put into use. Let’s pretend a company recently purchased office furniture that they plan to use in a building. It was a large purchase, comprised of desks, chairs, filing cabinets, and other standard office furniture accessories. Upon receipt of the furniture at the building, the company paid the invoice, and the accountant entered the $84,000 expense into an asset account called Work in Process (WIP).

How do you capitalize in a sentence?

The word capitalize means to record the amount of an item in a balance sheet account as opposed to the income statement. A larger company might decide that $700 is an immaterial amount and will not capitalize the printer as an asset. Rather, the large company will expense the printer immediately.