Asked by Tatayana Williams on Jul 07, 2024
Verified
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.
Verified Answer
Learning Objectives
- Know how to account for revenue and capital expenditures in maintaining and improving assets.
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