Capital asset
Capital Asset
Capital Asset (pronounced: /ˈkapɪt(ə)l ˈasɛt/) is a significant piece of property such as a house, stock, bond, or land. It includes all tangible and intangible assets that a business owns and can use to produce its goods or services.
Etymology
The term "Capital Asset" is derived from the Latin word 'capitalis', meaning 'of the head', and the Old French 'asset', meaning 'enough'. In the context of finance, it refers to assets that are important or significant.
Definition
A Capital Asset is defined as a significant piece of property such as a house, stock, bond, or land. It includes all tangible and intangible assets that a business owns and can use to produce its goods or services. Capital assets are expected to generate value over a long period of time, rather than being consumed in the short term.
Related Terms
- Asset: A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
- Capital: Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.
- Tangible Asset: An asset that has a physical form such as machinery, buildings, and land.
- Intangible Asset: An asset that lacks physical substance and usually is very hard to evaluate such as brand reputation, copyrights, patents, and business methodologies.
See Also
External links
- Medical encyclopedia article on Capital asset
- Wikipedia's article - Capital asset
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