Capital Asset, Capital Budget, Capital Gain, Capital Improvement :




Capital Asset : A long term asset or investment, in terms of property, for example land, building, machinery etc.



Capital Budget : The amount of money which has been kept aside so that it can be used for financing capital assets, for example, to purchase new machinery, to expand production etc.



Capital Gain : The amount of money, which is received from the sale of a particular capital asset after subtracting the book value of that property



Capital Improvement : An improvement in the capital, such as, machinery, land etc., so that its value is increased in terms of either productivity or productivity longevity : A cost, which is incurred on either the improvement or the depreciation of an asset




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