CAPITALIZED Definition

CAPITALIZED is when something is recorded as an asset. For example, a capitalized lease is in substance a purchase to the lessee. An asset is recorded equal to the present value of the lease payments, which is also recorded as a liability. Payments, partly interest and partly principal, are made on the lease liability. The leased asset is depreciated by the lessee as though it were legally owned by the lessee.

Learn new Accounting Terms

TIMES FIXED CHARGES EARNED see COVERAGE OF FIXED CHARGES.

CARD is Certificate for Amortizing Revolving Debts; an asset-backed security backed by credit card receivables.

Suggest a Term

Enter Search Term

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

Purchase and download Glossary
Only $9.95