capital asset
Long-term business holding
A capital asset is property expected to generate value over time rather than be consumed or sold in the ordinary course of business.
Real estate, equipment, vehicles, and investment securities are typical capital assets.
The term matters most in tax and accounting contexts, where gains from selling capital assets receive different treatment than ordinary income: The IRS treats stocks as capital assets.
Land and its structures
- landEarth's solid surface
- buildingEnclosed roofed structure
- equipmentTools for a task
- machineryCollective mechanical equipment
vehicle · plant · infrastructure · furniture · fixture · leasehold · improvement · inventory
Asset value reduction over time
- amortizationGradual debt reduction schedule
- appreciationRecognition of worth
- book valueAsset minus accumulated depreciation
- fair market valueObjective exchange price
impairment · write-down · useful life · salvage value · cost basis · revaluation · mark-to-market · assessed value
Assets-liabilities-equity report
- equityImpartial treatment or ownership value
- shareholderEquity owner in corporation
- ownershipLegal right of possession
- stakeSharpened post or share
retained earnings · corporate governance · divestiture · restructuring · merger · acquisition · spin-off · liquidation
Collected works or assets
- diversificationExpanding into varied areas
- holding periodTime an asset is owned
- acquisitionAct of obtaining something
- dispositionInherent character or arrangement
yield · risk tolerance · securities · stocks · bonds · ETFs · mutual funds · commodities
Financial record book
- journal entryDated record in diary
- classificationSystematic grouping by traits
- recognitionPerceiving something as known
- measurementDetermining size or amount
disclosure · GAAP · audit · financial statement · tax basis · expense
real estate
Land and its structures
machinery · vehicle · plant · infrastructure · furniture · fixture · leasehold · improvement · inventory · intellectual property
depreciation
Asset value reduction over time
- amortizationGradual debt reduction schedule
- appreciationRecognition of worth
- book valueAsset minus accumulated depreciation
fair market value · impairment · write-down · useful life · salvage value · cost basis · revaluation · mark-to-market · assessed value · residual value
balance sheet
Assets-liabilities-equity report
- equityImpartial treatment or ownership value
- shareholderEquity owner in corporation
- ownershipLegal right of possession
stake · retained earnings · corporate governance · divestiture · restructuring · merger · acquisition · spin-off · liquidation · write-off
portfolio
Collected works or assets
- diversificationExpanding into varied areas
- holding periodTime an asset is owned
- acquisitionAct of obtaining something
disposition · yield · risk tolerance · securities · stocks · bonds · ETFs · mutual funds · commodities · futures
ledger
Financial record book
- journal entryDated record in diary
- classificationSystematic grouping by traits
- recognitionPerceiving something as known
measurement · disclosure · GAAP · audit · financial statement · tax basis · expense
capital assetcash
Ready spending funds
liquid assets · current assets · liquid asset · money · bank deposits
capital assetinventory
Catalog of held assets
stock-in-trade · merchandise · raw materials · finished goods · stock
capital, asset, capitals, assets, capitalism, capitalist, capitalists, capitalize, capitalized