Capitalize

Definition

A method used to expense an asset over its useful life.

See Also

Depreciation, balance sheet, expense, basis, adjusted basis.

Tips

An asset can either be expensed or capitalized. If it is expensed, it will show up as an expense on the Profit & Loss Statement. If it is capitalized, it will show up as an asset on the balance sheet and then depreciated, which shows up as "depreciation" on the Profit & Loss Statement.