What does capitalized mean in business studies?

Answer 1

In business studies, "capitalized" refers to the process of converting a long-term expense or investment into a capitalized asset. This means that instead of recording the expense as an immediate cost on the income statement, it is recorded as an asset on the balance sheet and gradually expensed over a period of time through depreciation or amortization. By capitalizing an expenditure, businesses can spread the cost over its useful life and reduce the impact on their financial statements in a single reporting period.