Capital Asset

A type of asset that is not easily sold in the regular course of a business's operations for cash and is generally owned for its role in contributing to the business's ability to generate profit. Furthermore, it is expected that the benefits gained from the asset will extend beyond a time span of one year. On a business's balance sheet, capital assets are represented by the property, plant and equipment figure.

Examples include land, buildings, machinery, etc. Generally, these are assets that cannot quickly be turned into cash and are often only liquidated in a worst-case scenario. For example, a company might look at selling a capital asset if it was looking at restructuring or the business was engaged in bankruptcy proceedings.

Depending on the business involved, capital assets may represent the majority of assets that are owned. For example, in equipment heavy operations such as oil exploration, it is not surprising to find the majority of a business's assets to be capital assets.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Capital asset — has two related meanings in the fields of accounting and financial economics. In accounting, a capital asset is an asset that is recorded on a balance sheet as capital that is, property that creates more property, e.g. a factory that creates… …   Wikipedia

  • capital asset — see asset 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. capital asset …   Law dictionary

  • capital asset — UK US noun [countable] [singular capital asset plural capital assets] business something such as equipment or buildings that a company owns and uses in doing its business …   Useful english dictionary

  • capital asset — noun count BUSINESS something such as equipment or buildings that a company owns and uses in doing its business …   Usage of the words and phrases in modern English

  • capital asset — A long term asset, such as land or a building, not purchased or sold in the normal course of business. Bloomberg Financial Dictionary * * * capital asset capital asset ➔ asset * * * capital asset UK US noun [C, usually plural] (also fixed asset,… …   Financial and business terms

  • capital asset — UK / US noun [countable] Word forms capital asset : singular capital asset plural capital assets business something such as equipment or buildings that a company owns and uses in doing its business …   English dictionary

  • capital asset — noun a) An asset that is recorded on a balance sheet as capital that is, property that creates more property, such as a factory that creates shoes, or a forest that yields a quantity of wood. b) An asset in the sense of accounting, but also… …   Wiktionary

  • capital asset. — See fixed asset. [1920 25] * * * …   Universalium

  • capital asset — See: fixed asset …   Accounting dictionary

  • capital asset — See fixed asset …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.