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How do you determine if an asset should be capitalized?

The criteria to capitalize an item as a fixed asset are that it must both meet a dollar threshold and provide a useful life greater than one accounting period (one fiscal year).

How do you determine if an asset should be capitalized?

The criteria to capitalize an item as a fixed asset are that it must both meet a dollar threshold and provide a useful life greater than one accounting period (one fiscal year).

How are general capital assets recorded?

General capital assets should be classified in the appropriate account code to indicate the type of fixed asset owned and the source of the monies from which the general capital assets were acquired.

What is a typical capitalization policy?

A capitalization policy is used by a company to set a threshold, above which qualifying expenditures are recorded as fixed assets, and below which they are charged to expense as incurred. The policy is typically set by senior management or even the board of directors.

Is capital a asset or Equity?

Capital is a subcategory of equity, which includes other assets such as treasury shares and property.

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