CAPITAL MAINTENANCE
An accounting idea based on the standard that profit is only known after capital has been conserve or there has been a 100 percent return of expense. This term has been acquired if the worth of a company's initial fund at the end of a period is unaltered from that at the start of the period, with any extra money acknowledge as earning.
As capital maintenance is primarily uptight with an enterprise's description of the capital that is needed to preserve by it, the idea analyzed between the enterprise's return on fund and its return of capital.
The two common meaning of capital maintenance are physical capital maintenance and financial or monetary capital maintenance.
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