- Funds that are used to buy permanent fixed assets for a business. This might include machinery, land, or buildings as opposed to those expenses incurred on a day-to-day basis.
substance, property, assets
Related Terms and Acronyms
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- Capital Assets — Definition,
- Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
- Capital Cost Allowance (CCA) — Acronym, Canada,
- Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
- Capital Expenditure — Definition,
- The cost of making an improvement to a property.
- Capital Improvement — Definition,
- Any permanent structure or other asset added to a property that adds to its value.
- Fixed Assets (FA) — Acronym, Important,
- Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
- Investment — Definition,
- Something you put your money into in order to make money.
- Operating Cash Flow (OCF) — Acronym,
- The money a company generates from its business operations. This revenue excludes costs from certain investments.
- Useful Life — Definition,
- The number of years depreciable business property is expected to be productive and in use.
- Valuation — Definition,
- The process of finding the worth of an asset or business.
- The estimation of a property's price value through an appraisal.