capitalized interest

Definition

Interest that is not immediately expensed, but instead is treated as an asset and amortized over time in the income statement.

Use this term in a sentence

We had some capitalized interest and realized that it was something that would be working over time and not right away.

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You should always find out everything before you start including how much the capitalized interest will be for the long term.

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The capitalized interest was included in the financial statement, this was not the focus point of the meeting yesterday but it was worth knowing.

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