Capitalizing a cost means to record the cost into a(n) a. contributed capital. O b. asset. Oc. expenditure. d. income statement.
Capitalizing a cost means to record the cost into a(n) a. contributed capital. O b. asset. Oc. expenditure. d. income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Capitalizing a cost means to record the cost into a(n)
a.
contributed capital.
Ob.
asset.
С.
expenditure.
d.
income statement.
A Moving to the next question prevents changes to this answer.
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Step 1
Capitalization represents the cost of an asset recorded over a period of time. Whereas, when the cost is expensed, it shows the reduction from revenue in the income statement of the company. The capitalization is recorded as an expense in the balance sheet of the company. It is the cost recorded in the cost of a long-term asset.
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