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Anonymous Posted 17 years ago
Grammar
The word "capitalized"
Hello!
Please explain the meaning of "capitalized " in red in the following context. Thanks!
Context :
No matter how strategic IT is to your company, from an accounting or investment perspective, it's going to be treated as a cost center. Your annual operating expenditures (OpEx) will be rolled into the selling, general and administrative expenses part of the income statement. IT capital expenditures (CapEx) are capitalized on the balance sheet and amortized over the useful life of the investment.
Thanks!
Xin Yan
China
Please explain the meaning of "capitalized " in red in the following context. Thanks!
Context :
No matter how strategic IT is to your company, from an accounting or investment perspective, it's going to be treated as a cost center. Your annual operating expenditures (OpEx) will be rolled into the selling, general and administrative expenses part of the income statement. IT capital expenditures (CapEx) are capitalized on the balance sheet and amortized over the useful life of the investment.
Thanks!
Xin Yan
China
Top answer
Hi, Generally speaking, I believe the basic idea is this. I have a business. I buy a 100 million dollar building.
- Hi, Generally speaking, I believe the basic idea is this.
- I have a business.
- I buy a 100 million dollar building.
- I buy a one-dollar pencil.
- They are both expenditures, but my accounting statements will not treat these two expenditures in the same way.
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1 Answers
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Hi,
Generally speaking, I believe the basic idea is this.
I have a business.
I buy a 100 million dollar building.
I buy a one-dollar pencil.
They are both expenditures, but my accounting statements will not treat these two expenditures in the same way. In the former, I have converted my money into a capital ass
Generally speaking, I believe the basic idea is this.
I have a business.
I buy a 100 million dollar building.
I buy a one-dollar pencil.
They are both expenditures, but my accounting statements will not treat these two expenditures in the same way. In the former, I have converted my money into a capital ass
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