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- Capitalization in accounting is the recording of a cost as an asset, rather than an expense1234. This is done to match the timing of cash flows5 and to spread out the cost over the life of the asset24. Capitalization is used for fixed assets that have a long life span4, such as buildings or equipment4. Capitalization is an accounting rule1 and a principle35.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.In accounting, capitalization is an accounting rule used to recognize a cash outlay as an asset on the balance sheet, rather than an expense on the income statement. In finance, capitalization is a quantitative assessment of a firm's capital structure. Here it refers to the cost of capital in the form of a corporation's ...www.investopedia.com/terms/c/capitalization.aspWhat is Capitalization? Capitalization is the recordation of a cost as an asset, rather than an expense. This approach is used when a cost is not expected to be entirely consumed in the current period, but rather over an extended period of time.www.accountingtools.com/articles/what-is-capitaliz…Home » Accounting Dictionary » What is Capitalization? Definition: Capitalization is the process of recording an expense or cost in a permanent account and systematically allocating over future periods. In other words, capitalization takes an expense, which would normally be recorded in a temporary account, and records it in ...www.myaccountingcourse.com/accounting-dictiona…In accounting, capitalization refers to the recording of expenses as assets on the balance sheet instead of as expenses on the income statement. This means that the costs are not immediately expensed, but are instead spread out over the life of the asset. Capitalization is most commonly used for fixed assets, such as ...www.infocomm.ky/what-is-capitalization-in-account…To capitalize is to record a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense. Capitalization is used in corporate accounting to match the timing of cash flows. Capitalize Understanding How to Capitalize One of the most important principles of accounting is the matching ...www.investopedia.com/terms/c/capitalize.asp
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