business law

capitalization

1) In the accounting context, it is where a cost is recorded as a a price of the asset rather than as an expenditure.

2) In the corporate context, it is a firm's "invested capital," meaning the business' corporate stock plus long-term debt plus retained earnings.

3) The total dollar value of a company's outstanding shares - better known as market capitalization.  It is calculated by multiplying the total number of outstanding shares by the market value of one share.

 

capital expenditure

Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits.  In the accounting context, capital expenditures are listed to an asset account.

 

capital account

A shareholder's or owner's account indicating the individual owner's investment plus net income from business operations, minus any net losses from operations, and minus any withdrawals of funds by the owner for personal use.

 

books

A collection of the financial records of a business. 

In the investment sense, a book is a record of all the positions (e.g., long and short) that an investor has taken.

 

bookkeeper

A person who records the daily financial transactions of a business or organizationk, such as sales, purchases, receipts and payments.  The bookkeeper also prepares financial statements, such as the trial balance, which are then used by accountants to create the accountant's report. 

 

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