Capital Asset Definition & Example - InvestingAnswers
2020年9月29日 · Capital assets are recorded on the balance sheet at their historical cost, less any accumulated depreciation (or amortization in the case of intangible assets). So if Company XYZ paid $100,000 for a piece of equipment in the factory, it would record it as a $100,000 asset on its balance sheet.
Net Investment Definition & Example - InvestingAnswers
2020年8月12日 · Capital expenditures include the calculated worth of all assets (i.e. property, software, equipment, etc.) and the amount of additional expenses being invested into those assets (i.e. maintenance, repair, upkeep, installation, etc.). Capital assets lose value over their useful life. Asset depreciation can be calculated using two contrasting ...
Working Capital | Example & Meaning - InvestingAnswers
2020年11月30日 · Working Capital = Current assets - Current liabilities. What Are Current Assets? Current assets include a company’s liquid cash as well as other assets that can be converted to cash within one year or less. Some examples of current assets include money in checking accounts, inventory, supplies, equipment, and temporary investments.
Capital Expenditures Definition & Example - InvestingAnswers
2020年8月12日 · What are Capital Expenditures? Capital expenditures, or capex, is money used to purchase, upgrade, improve, or extend the life of long-term assets. Long-term assets are typically property, infrastructure, or equipment with a useful life of more than one year.
Capital Gain Definition & Example - InvestingAnswers
2020年10月18日 · Capital gains are taxable, but only when they are realized. That is, they only become taxable when the asset is sold. Until that point, any gains are considered unrealized and are not taxable. The IRS considers nearly every asset owned by individuals and companies as capital assets and thus they are subject to capital gains taxes.
Capital Accumulation Definition & Example - InvestingAnswers
2020年10月17日 · Companies can accumulate assets in a variety of ways, and it is important to remember that assets can be physical, intangible or financial. In any case, their job is to produce revenue and profits. A company can accumulate capital by acquiring another company and/or its assets, issue shares, issue bonds, reinvesting profits, etc.
Equity | Definition & Examples - InvestingAnswers
2020年11月24日 · $6,500,000 (Assets)- $4,000,000 (Liabilities) = $2,500,000 (Shareholder Equity) You can refer to the bottom of the balance sheet to see that this is true. Market Value vs. Book Value . Market value is the value of company assets, liabilities, and shareholder equity as traded in the market on a particular date. This price moves up and down as ...
Capital Account Definition & Example - InvestingAnswers
2019年10月1日 · The capital account essentially is the left-hand side of a country's balance sheet, because it measures all of the physical and financial assets the country owns. Capital accounts are an important part of national accounting , which is a method of calculating the economic activity of a country or region.
Return on Capital | Formula & Definition - InvestingAnswers
Return of capital refers to a company returning original investment funds back to the investor or by liquidating assets. Return on capital refers to a company’s profitability. Is Return of Capital Taxable? Return of capital is a non-taxable event for the investor – as long as the capital returned doesn’t exceed the initial investment.
Capital Loss Definition | How to Calculate - InvestingAnswers
2020年10月17日 · How Does Capital Loss Work? The formula for capital loss is: Purchase Price - sale Price = Capital Loss. note that this formula assumes the purchase price is higher than the sale price. If an investor sells an asset for more than he or she paid, this is called a capital gain. Let's assume you purchase 100 shares of XYZ Company for $5 per share.