Capitalizing a cost means to record the cost into a(n)________ account.
A)contributed capital
B)asset
C)expenditure
D)income statement

Question

Quizplus · Accepted Answer

Capitalizing a cost means recording it as an asset on the balance sheet, as the cost is expected to provide future economic benefits to the company. Option A (contributed capital) is not relevant here, as it refers to funds contributed by shareholders. Option C (expenditure) is the opposite of capitalizing, as it means recording a cost as an expense on the income statement. Option D (income statement) is also not relevant, as it refers to the financial statement that summarizes a company's revenues and expenses.

Capitalizing a Cost Means to Record the Cost into A(n)________