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to capitalize

to capitalize

1 6.1
To record a cost as a lasting company investment rather than an immediate expense
  • verb
  • /ˈkæpɪtəˌlaɪz/
  • Formal
translation icon : activar
  • Companies must carefully decide which expenses to capitalize so that they can be reported as investments rather than immediate costs.
  • capitalize costs
  • capitalize expenses

Examples

  • We need timesheets internally to capitalize labor on large projects, and so face an even higher mountain when you consider that for most commercial enterprises, timesheets are not really used that much.

    Blog text (28)
  • When preparing financial statements, it is essential to capitalize any significant costs to reflect them as assets.

  • Their rent paid to the housing authorities would be capitalized.

    Academic text (2001)
  • Even so, both funds have managed to carry on with their missions, despite insufficient funding to capitalize on the investment opportunities in their respective countries.

    Academic text (2001)
  • Normally such expenditures would have to, under U.S. principles, be capitalized.

    Academic text (1999)
  • They were likely far less capitalized than anyone ever acknowledged.

    Blog text (25)
  • "If you're expected to lose a significant portion of your ability to capitalize expenses in the first year, that definitely affects your projections and your planning for how you're going to move forward."

    Blog text (29)
  • They, unlike Canada and the United States, may not even allow a full deduction for current year R&D expenditures, and the expenditure has to be capitalized.

    Academic text (1999)
  • Cleaning up Japan's debt-saddled banks is another necessary reform, but thus far, few details are forthcoming on whether the government will force banks to foreclose bad loans, capitalize them with taxpayers' money, or introduce greater transparency into the financial system.

    Academic text (2002)
  • Moreover, the uniform capitalization rules of IRC section 263A, which prescribe which costs must be capitalized and included in the basis of inventory, do not apply to inventory items treated as nonincidental material and supplies.

    Academic text (2018)

Antonyms

to expense
  • Specialized
5 6.5

To record a cost so you can claim the money back

How Capitalized

to capitalize
  • Formal
1 6.1
to defer
  • Formal
15 5.5
to expense
  • Specialized
5 6.5

Surface Forms

capitalize infinitive
capitalized past participle
capitalizing present participle
capitalizes third person singular

Morphology

capitalize = capital (semi-transparent) = capital + ize

The transformation from 'capital' to 'capitalize' involves a specific accounting meaning that may not be immediately obvious to all learners.

Etymology

Capitalize comes from capital (from Latin caput 'head'), where capital means 'money' or 'lasting value', so to capitalize an expense is to treat it as part of the company's 'capital' that lasts over time instead of a one-time cost.