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.

Question

Quizplus · Accepted Answer

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.

To Capitalize an Expenditure Is To