capital asset

Primary tabs

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 updated in December of 2021 by the Wex Definitions Team]