Capitalization When Defining Abbreviations

Capitalize definition

And it can make more informed decisions about how to allocate its resources. Landmarks and monuments also start their proper names with capital letters, such as the Empire State Building and the Golden Gate Bridge. Street names are always capitalized, too (e.g., Main Street). In English, words are capitalized for a few different reasons. Capitalizing a word can change the way the reader interprets its meaning, as in the case of polish and Polish or apple and Apple . The process of writing off an asset over its useful life is referred to as depreciation, which is used for fixed assets, such as equipment. Amortization is used for intangible assets, such as intellectual property.

  • In English, there are a few capitonyms, which are words whose meaning varies with capitalization.
  • Capitalizemeans to determine the present value of Commutation Losses, without regard to the Subscribing Reinsurer’s ability to pay such losses.
  • It is commonly used in transcribed speech to indicate that a person is shouting, or to indicate a hectoring and obnoxious speaker.
  • He capitalized on the gains accruing from the credibility of the literati and used this symbolic capital to underpin his religious claims.
  • Similarly, you would capitalize the word eve in holidays such as Christmas Eve and New Year’s Eve.

The first approach is more aggressive and may result in a higher level of debt on the balance sheet. The second approach is more conservative and may result in lower profits in the short-term. Ultimately, the decision of how to treat an expense should consider the company’s overall financial strategy. The first word of every sentence is capitalized, and to capitalize is to write in capital (or upper-case) letters. To capitalize also means to take advantage of an opportunity. Graduates try to capitalize on their degrees by getting well-paying jobs. A football team tries to capitalize on the other team’s mistakes, such as making a touchdown after an interception.

English Capitalization Rules: How, When, and Why

When used this way, it sometimes also means to monetize. Of course, you already know to capitalize at the start of each sentence. There are other interesting sentence structures that require capitalization. The names of days and months should be capitalized, such as January, September, Wednesday, and Sunday. We can determine the cap rate by looking at recent sales of comparable properties. With a known sales price and net operating income , we can establish a cap rate to value similar properties.

Typically speaking, entities maintain a capitalization policy, and they capitalize large investments that are recognized as an asset on thebalance sheet. Theseassetsprovide benefit to the business over a specific useful life, and therefore the entity can spread the recognition of the cost of the asset over that time period. There are many benefits to capitalization, but the most significant benefit is the expense reduction in a given period of time. As it relates to the capitalization of assets, such as a building, the expense is recognized asdepreciation expenseeach period. In English, capital letters are most commonly used at the start of a sentence, for the pronoun I, and for proper nouns. All words capitalized, except for certain subsets defined by rules that are not universally standardized, often minor words such as “the” , “of”, or “and”. Other commonly lowercase words are prepositions and coordinating conjunctions.

Examples of capitalize

Capitalization may also refer to the concept of converting some idea into a business or investment. In finance, capitalization is a quantitative assessment of a firm’s capital structure.

Capitalize definition

Find similar words to capitalize using the buttons below. Most people love to provide their opinions about products, so capitalize on this tendency. However, unless these products are complemented by Epson consumables to match, users cannot expect to fully capitalize on their investment. Capitalize definition To calculate the present value of (a periodical payment, annuity, income, etc.); convert (an income, etc.) into one payment or sum equivalent to the computed present value. Capitalizemeans deferring the cost of an asset so that it may be spread over more than one fiscal period.


The rules have also changed over time, generally to capitalize fewer words. The conventions used in an 18th-century document will be unfamiliar to a modern reader; for instance, many common nouns were capitalized. Because long-term assets are costly, expensing the cost over future periods reduces significant fluctuations in income, especially for small firms. Many lenders require companies to maintain a specific debt-to-equity ratio. If large long-term assets were expensed immediately, it could compromise the required ratio for existing loans or could prevent firms from receiving new loans.

Although an abbreviation is composed of capital letters, the full words that define the abbreviation are not always capitalized. To write or print in capital letters or with an initial capital. Let’s pretend a company recently purchased office furniture that they plan to use in a building. It was a large purchase, comprised of desks, chairs, filing cabinets, and other standard office furniture accessories. Upon receipt of the furniture at the building, the company paid the invoice, and the accountant entered the $84,000 expense into an asset account called Work in Process . This account accumulates all expenses that are intended to be long-term assets, but they have not yet been put into use, and therefore cannot yet be capitalized.

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