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Asset ManagementBusiness Operations http://cfaesfinance.osu.eduContents Types of assetsBuying assetsTaggingLoggingAnnual verificationMaintenance for changes regarding assetsDisposal9/6/2016Types of
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Capitalized refers to expenses that are recorded as assets on a company's balance sheet instead of as expenses on the income statement.
Companies and businesses that follow the accrual accounting method are required to capitalize certain expenses.
Capitalizing expenses involves recording them as assets and then gradually expensing them over time through depreciation or amortization.
The purpose of capitalizing expenses is to match the expense with the revenue it generates over time, rather than recording it as a one-time expense.
The amount of expenses capitalized, the method used for depreciation or amortization, and any relevant supporting documentation.
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