What does capitalize mean on the CPA exam?
Capitalize. To record a cost as an asset and spread it over the periods it benefits, rather than expensing it immediately.
Which CPA exam sections use capitalize?
Capitalize appears in the FAR section of the CPA exam.
Other names for capitalize
capitalized
Related terms
- asset retirement obligation: A legal obligation associated with the retirement of a tangible long-lived asset, recognized at fair value in the period incurred, with an equal asset retirement cost capitalized into the asset.
- asset acquisition: Buying a group of assets that does not amount to a business.
- internal-use software: Software acquired or built for the entity's own operations.
- piercing the corporate veil: A court setting aside limited liability and reaching the owners personally, typically where the entity was undercapitalized, its formalities ignored, or its funds mixed with the owner's.
- technological feasibility: The point at which software to be sold, leased, or otherwise marketed reaches a completed detail program design or, absent one, a working model.
- straight-line: Spreading an amount evenly across the periods it covers.