What are capital assets?

Question

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Jarboe 0 Comments

I don’t know what capital assets actually means. Do you know what kind of assets are considered as capital assets and how does a company use them?

1 Answer

score 0 · Answer 1 · 2012-12-02T20:14:31+00:00

Capital asset is any asset that the company hold for operating reasons. For example,fixed assets are not being sold as part of the company’s day to day operations. They exist and contribute with the intention to generate profits. They are used as part of the operating activities but they are not being disposed as part of the company’s daily operations (as opposed to inventory for example).