What is a dollar amount used to determine if an asset will be capitalized?

The term that refers to a dollar amount used to determine if an asset will be capitalized is the capitalization threshold. This threshold is a specific monetary limit set by an organization, which dictates the minimum cost an asset must exceed for it to be recorded as a capital asset on the balance sheet instead of being expensed in the period it was purchased.

Capitalization is crucial for financial reporting and asset management, as it affects the organization's financial statements and the way assets are tracked and depreciated over time. Assets below this threshold are typically expensed immediately, while those above it are added to the asset column and depreciated over their useful lives. This approach helps in better matching the asset’s cost with the revenues it helps generate over time, aligning with the accounting principles that govern financial reporting.

The other options, while related to financial accounting practices, do not specifically denote the dollar amount for capitalization. Depreciation expense pertains to how a capital asset's value decreases over time and is not a threshold but rather a method of expense recognition. The matching principle refers to the accounting concept of matching revenues with expenses incurred to generate them, and the term financial metric generally refers to any measurable factor that assesses financial performance but does not specifically indicate a threshold for capitalization decisions.