Asked by Tatayana Williams on Jul 07, 2024

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To capitalize an expenditure is to:

A) Debit an expense account.
B) Credit an expense account.
C) Credit the owner's capital account.
D) Credit an asset account.
E) Debit an asset account.

Capitalize

To record a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.

Expense Account

An account used to track expenditures associated with business operations, often related to employee travel or business activities.

Asset Account

An account recorded on the balance sheet that represents items of value owned by a company, such as cash, inventory, buildings, and equipment.

  • Know how to account for revenue and capital expenditures in maintaining and improving assets.
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AV
angle vickyJul 14, 2024
Final Answer :
E
Explanation :
Capitalizing an expenditure involves recording it as an asset on the balance sheet rather than an expense on the income statement. This is done by debiting (increasing) an asset account, which reflects the company's investment in a long-term asset that will provide economic benefits over future periods.