capitalization (cap)

Definitions (4)
Related Terms
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 'capitalization (cap)' 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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