CAPITAL SPARE Definition

Bookmark and Share

CAPITAL SPARE is the parts within inventory that are purchased as spare parts for depreciable assets (e.g., capital equipment). As such, the capital spares within inventory are depreciable and should not be treated as normal inventory.

Learn new Accounting Terms

MATCHING CONCEPT is the accounting principle that requires the recognition of all costs that are directly associated with the realization of the revenue reported within the income statement.

RETURN ON SALES is a measure of a companys profitability, equal to a fiscal years pre-tax income divided by total sales.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.