0
Capitalization occurs when your lender or loan servicer adds the amount of unpaid, accrued interest on your student loan to your loan balance. Once this interest has been capitalized, interest begins to accrue on that new, higher loan balance.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What does interest inventory mean?
it means you are dumb
What accounting concepts principles is most significant in the development of a capitalization policy?
units of measure
When would a business have negative interest income?
It wouldn't be a negative.....if you're looking at an annual filing and it shows a positive interest expense line and a negative interest income line....it doesn't mean that the interest income is actually negative....it offsets the interest expense...since all positive amounts are actually being deducted from Net Sales
Capitalization of Profits?
Converting a company's retained earnings, which represent the profits held in the business over time, to capital. The capitalization of profits process involves issuing a stock dividend, or bonus shares, to existing shareholders. This allocation is done on the basis of their existing share holdings, similar to a rights issue.
What is the journal entry for Interest due but not received?
debit interest receivablecredit interest income
The action of adding accrued interest to the principal balance is called?
capitalization. Capitalization is when all unpaid interest is added to the principal balance of your loan. Capitalization increases your total amount to be repaid because you will then have to pay interest on the increased principal amount.
What does -- the process of deferring interest as an asset rather than an expense -- mean in WikiAnswers' answer to Capitalization of Interest?
Interest charged is normally an expense - in that it is a deduction from an account. Deferring payment of the interest, means the money that would have been paid is still in the account - making it an asset.
What do capitalized words mean?
The capitalization guide at the back of my dictionary lists 20 rules for capitalization.
When is interest capitalized to plant assets?
Interest is capitalized during the construction period for a) assets built for a company's own use as well as b) assets constructed as discrete projects for sale or lease (a ship or a real estate development, for example) This excludes from interest capitalization inventories that are routinely manufactured in large quantities on a repetitive basis and assets that already are in use or are ready for their intended use. Hence Only assest that are constructed as discrete projects qualify for interest capitalization. Only interest incurred during the construction period is eligible for capitalization.
What does he mean on periodic table?
Helium. The symbol is He (capitalization matters in chemical formulas).
What does the acronym COPS mean in language arts?
Capitalization Organization Punctuation Spelling
What does the German word sie mean?
Depending on context and capitalization, sie can be translated as:sie = she, her, them, they,Sie = you (formal)
What does small cap mean?
Refers to stocks with a relatively small market capitalization. Market capitalization measures the size of the firm. It is the current share price times outstanding shares. The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $300 million and $2 billion.
What has the author C G Blackadar written?
C. G. Blackadar has written: 'Dynamic capitalization' -- subject(s): Interest, Mathematical models, Real property, Valuation
How do you use the word capitalization in a sentence?
You always want to begin a new sentence with capitalization
What is the correct capitalization of Notre Dame school?
Notre Dame is the correct capitalization of the school.
What does CUPS mean in writing process?
It's an editing strategy that stands for C - Capitalization, U - sage, P -Punctuation, and S - Spelling. It works best when students write it on their paper and then review their writing for mistakes in the CUPS areas, one at a time. Capitalization is red
