# Capitalization

> Capitalization — Recording a cost as an asset rather than an expense because it brings a future benefit — then allocated to expense over that benefit.

Source: https://lopifi.com/glossary/capitalization
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is capitalization?** In accounting, capitalization means recording a cost as an asset rather than an expense because it brings a future benefit — then allocated to expense over that benefit.

## Words this system refuses for it

- capitalising for financing
- capex

- **Category:** Fixed assets & leases
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** expense, asset