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uncapitalized

uncapitalized

7.5
Recorded as a cost for the year instead of an asset on the balance sheet
  • adjective
  • /ˌʌnˈkæpɪtəˌlaɪzd/
  • Specialized
translation icon : no capitalizado
  • The accountant explained that expenditures on marketing would be uncapitalized since they do not add to the asset value.

Examples

  • It will be pricey research tests, unutilized and uncapitalized research results.

    Blog text (7)
  • The company's unprofitable operations led to many expenses being uncapitalized on the balance sheet.

  • Due to the financial losses, all costs were uncapitalized to reflect a more accurate balance sheet.

Surface Forms

uncapitalized positive

Morphology

uncapitalized = capitalized (semi-transparent) = un + capital + ize + ed

The formation un + capitalized is morphologically regular, but the accounting sense of 'capitalize' (to record as a capital asset) is domain-specific and may not be known to an average B1 learner.

Etymology

Uncapitalized comes from the parts un- 'not' and capital 'money or asset', so it means 'not made a capital item'. In accounting, that explains why an uncapitalized purchase is counted as an expense instead of being shown as an asset.