Capital Investments

Definition

• Funds that are used to buy permanent fixed assets for a business. This might include machinery, land, or buildings as opposed to those expenses incurred on a day-to-day basis.

Synonyms
substance, property, assets

Related Terms and Acronyms

• Asset — Definition,
  • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
• Capital Assets — Definition,
  • Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
• Capital Cost Allowance (CCA) — Acronym, Canada,
  • Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
• Capital Expenditure — Definition,
  • The cost of making an improvement to a property.
• Capital Improvement — Definition,
  • Any permanent structure or other asset added to a property that adds to its value.
• Fixed Assets (FA) — Acronym, Important,
  • Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
• Investment — Definition,
  • Something you put your money into in order to make money.
• Operating Cash Flow (OCF) — Acronym,
  • The money a company generates from its business operations. This revenue excludes costs from certain investments.
• Useful Life — Definition,
  • The number of years depreciable business property is expected to be productive and in use.
• Valuation — Definition,
  • The estimation of a property's price value through an appraisal.
  • The process of finding the worth of an asset or business.