CAPITALIZING Meaning and
Definition
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Capitalizing is a term used in finance and accounting to describe the process of recording an expense as an asset on a company's balance sheet. It involves recognizing or treating certain costs as investments rather than immediate expenses. When capitalizing an expense, it is allocated over a period of time, usually by means of depreciation or amortization, rather than being fully deducted in the year it is incurred.
By capitalizing certain costs, companies aim to match the recognition of expenses with the benefits that are obtained from those expenses over time. This practice is commonly applied to expenditures related to acquiring or developing long-term assets, such as buildings, machinery, or intangible assets like patents or trademarks. Capitalizing costs can potentially enhance a company's financial performance by spreading out the impact of these expenses on its profitability and financial statements.
However, it is important to note that guidelines and regulations exist to prevent abuse and ensure appropriate capitalization. Depending on the jurisdiction and accounting principles applied, there may be specific rules and criteria that dictate which costs can be capitalized and how they should be treated. Accurate and transparent capitalization practices are crucial for maintaining the integrity and reliability of a company's financial reporting, as they directly impact the determination of its assets, liabilities, and overall financial position.
Top Common Misspellings for CAPITALIZING *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for CAPITALIZING
Etymology of CAPITALIZING
The word "capitalizing" is derived from the noun "capital", which comes from the Latin word "caput", meaning "head". In Latin, "capitalis" means "of the head" or "related to the head". Over time, this meaning extended metaphorically to imply importance or significance.
The verb form "capitalize" emerged in English in the mid-18th century. Originally, it referred to writing or printing a word or letter in capital (uppercase) letters. This practice was often done to emphasize the significance of a particular word or to mark the beginning of a sentence. Later on, "capitalize" acquired a broader meaning related to utilizing resources or opportunities for financial gain, hence the term "capitalizing on".
In modern usage, "capitalizing" generally refers to various aspects of finance, economy, and business, such as investing, leveraging, or taking advantage of monetary assets or opportunities.
Similar spelling words for CAPITALIZING
Conjugate verb Capitalizing
CONDITIONAL
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FUTURE
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FUTURE PERFECT
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PRESENT
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PRESENT PERFECT
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