Capital asset - Definition

A tangible asset that is held for a Long period of time, not normally bought or sold, and cannot easily be converted into cash. It refers to any asset used to make money, as opposed to assets used for personal enjoyment or consumption. In governmental Accounting, it is defined as any asset used in operations with an initial useful life extending beyond one reporting period.

A common non-technical usage occurs when people ask that employees or the environment or something else be treated as a capital asset. In this context it means something managers have a responsibility to maintain, and to report changes in value as gains or losses

Terms near "Capital asset"

Capital gains
Carry Grid
Carry Trade
Cash Market
Cash on deposit
Central Bank
Certificate of Deposit (CD)
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