Capitalization has different meanings, referring to the allocation of costs in tax and accounting contexts and to capital structures in the corporate context.
In tax and accounting, capitalization allows costs to be...
accounting
capitalized expenditure
As opposed to an ordinary (or operating expense), which covers the day-to-day costs necessary to keep a business running, a capitalized expenditure is an expense that is made to 1) acquire an asset (whether tangible or intangible) that has a...
capitalized interest
Capitalized interest refers to accrued interest on an asset or loan that is not immediately reported on the company’s income statement as an expense like other interests. Instead, the corporation’s balance sheet reflects the interest in the...
capitalized value
Capitalized value is the current worth of an asset, usually real estate, based on a calculation of expected income from the asset over the course of its economic lifespan. Capitalized value is a useful tool for investors to decide whether an...
cash flow statement
A cash flow statement is a business' financial statement that measures how much cash is entering and leaving the entity throughout a specific accounting period.
[Last updated in August of 2021 by the Wex Definitions Team]
cash method of accounting
Cash method of accounting is a method of accounting used by many individuals and some small businesses to record their liabilities and income. When using the cash method, transactions are recorded only when the payments have been made or...
cashier's check
A cashier’s check is a bill of exchange, drawn by a bank upon itself (the bank is the debtor), payable to another person, showing the payee’s authorization to receive the amount represented on the check from the bank.
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certificate of deposit (CD)
Certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time and during that time, the account accrues interest, which the issuing bank pays out. The lump sum deposited must be in the account...
certified check
Certified check is a type of check that guarantees that there will be enough funds available for the recipient by the issuing bank. Additionally, the bank also verifies that the signature on the check is genuine. Certified checks are used to...
certified public accountant (CPA)
A certified public accountant (CPA) is an accounting professional who has met all the requirements to earn a CPA license from the State’s Board of Accountancy (SBA). The main difference between an accountant and CPAs is that CPAs may perform...