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Q: Is a service contract a capital asset?
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Do you include warranty charges on the initial cost of a fixed asset?

Include the cost of extended maintenance/warranty contracts in the asset valuation if the contract is purchased at the same time (or soon thereafter) as the capital asset. Depreciate these contracts over the useful life of the asset not the the contract life. Do not capitalize payments for contracts not purchased at the same time as the capital asset.


Where does one obtain a Capital Asset?

You can obtain a capital asset, otherwise known as a fixed asset by purchasing something for you or your company that has quite a high cost and is not perishable or a service. Examples include computers, machinery, etc.


Is owner's capital asset?

no owners capital is not an asset its an internal liability for the company


Is owner capital an asset?

no owners capital is not an asset its an internal liability for the company


Is a grocery store laser considered capital replacement of human labor in economics?

Capital is a physical asset that can be used to produce goods or service. So a laser in a store is classed as capital.


What is a capital purchase?

A capital purchase is a purchase of equipment, property, or any asset that contributes to the production of a good or service. Depending on your countries tax laws, it would be entered into your asset register and its value would depreciate over a number of years.


Are accounts receivable a capital assets?

No, capital assets are listed as PP&E (Property, Plant, & Equipment). An account receivable is either a current asset or a long-term asset, not a capital asset.


Difference between put option and call option?

The holder/purchaser/owner of a call option contract has the right to buy an asset (or call the asset away) from a writer/seller of a call option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a call option contract expects the price of the underlying asset to rise during the term or duration of the call contract, for as the value of the underlying asset increases so does the value of the call option contract. Conversely, the write/seller of a call option contract expects the price of the underlying asset to remain stable or to decline. The holder/purchaser/owner of a put option contract has the right to sell an asset (or put the asset) to a writer/seller of a put option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a put option contract expects the price of the underlying asset to decline during the term or duration of the put contract, for as the value of the underlying asset declines the contract value increases. Conversely, the writer/seller of a put option contract expects the price of the underlying asset to remain stable or to rise.


Is salary a capital expenditure?

No. No capital asset results from it.


Is owner's capital a current asset or other asset?

None!- Its liability.


Is a prepaid asset considered an intangible asset?

No. A prepaid asset is an asset that May be Tangible or Intangible, but is not yet 'in service'. When it is acquired and in service, is when it may be determined if it is Tangible or Intangible.


Is capital classified as an asset?

yes