When deciding whether to expense or capitalize the costs incurred when acquiring a capital asset, which one of the following is not relevant to the decision?
A)Materiality criterion
B)Matching principle
C)Income tax rules
D)Revenue recognition principles

Question

Quizplus · Accepted Answer

The revenue recognition principle is not relevant to the decision of whether to expense or capitalize costs incurred when acquiring a capital asset. The materiality criterion, matching principle, and income tax rules are all factors to consider when making this decision.

When Deciding Whether to Expense or Capitalize the Costs Incurred