capital asset

Capital assets are tangible and generally illiquid property which a business intends to use to generate revenue and expects its usefulness to exceed one year. On a balance sheet , capital assets are represented as property, plant, and equipment (PP&E). Examples include land, buildings, and machinery. Businesses may depreciate capital assets over the course of their expected useful life.

[Last reviewed in December of 2021 by the Wex Definitions Team ]

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