Accounting Dictionary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Capitalize

Definition: You capitalize a purchase when you recorde it in an entity's accounting records as an asset. The reason for capitalizing an item include a purchase price that is higher than a minimum limit (known as the capitalization limit), and an estimated useful life that exceeds one year.