What is Foreclosure? Foreclosure is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. It is a concept that has existed for centuries.
Business expenditures can be divided into capital and revenue expenditures. Capital expenditures are expenditures that produce benefits across multiple time periods, such as the costs to acquire and make ready for use long-term assets.
The cost of these capital expenditures is depreciated (the term used is capitalized) over a period of time equal to what is called the useful life of that business asset. To explain this concept in a different way, the purchase of a capital asset adds to the value of the business.