capitalization (cap)


Definitions (4)

1.Accounting: Recording of a cost as a fixed asset (written off as depreciation over several accounting periods) instead of an expense (charged off against earnings in one accounting period).
2.Corporate: Conversion of the retained earnings of a firm into capital through a new issue of stock.
3.Finance: Structure and amount of long-term equity and debt capitals of a firm expressed as percentage of the total (equity and debt) capital.
4.Leasing: Conversion of an operating lease into a capital lease by classifying the leased asset as a purchased asset, and showing the lease obligations as loan on the books of the lessee firm.

Use this term in a sentence

  • In a sentence, it is important to understand how capitalization works because if you don't, then your sentences will be bad.

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  • You should always know what potential capitalization your product has so you can take full advantage of all it offers.

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  • When you are writing someone's given name, using proper nouns, or writing a the title of a story, article, etc, capitalization must be used.

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