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Capital assets |
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Capital AssetsAssets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines.Capital assetsAssets, purchased as a long term investment for generating profit, such as buildings, plant and machinery and fixtures etc.Similar MatchesIssued share capitalIssued share capitalTotal amount of shares that have been issued. Related: Outstanding shares. Capital assetCapital assetA long-term asset, such as land or a building, not purchased or sold in the normal course of business. OvercapitalizationOvercapitalizationSaid to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive. Capital transfer taxCapital transfer taxA UK tax on gifts made by an individual, whether made during their life or after death. Replaced by inheritance tax in 1986. Loan capitalLoan capitalThat part of a company's capital structure which is raised by loans. Such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. At the end of the period the capital is repaid. This contrasts with share capital where shareholders are entitled to a proportion of the company's profits usually by way of dividends. Further SuggestionsCapital market line (CML)Net working capital working capital Capital gains tax Net capital requirement Capital formation Total capitalization Capital loss Capital stock Capital augmenting Capital infusion Opportunity cost of capital Balance on capital account Incremental cost of capital Capital account balance Capital expenditure Capitalization Weighted Index Dedicated capital Human capital Human capital Capital gains distribution Working capital ratio Capital account capital movement Capital loss |
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