Which of the following statements about capitalizing costs is correct?
A)Capitalizing costs refers to the process of converting assets to expenses.
B)All costs incurred to acquire an asset may be capitalized.
C)Capitalizing a cost means to record it as an asset.
D)Capitalizing costs results in an immediate decrease in net income.

Question

Quizplus · Accepted Answer

Accountants say costs have been capitalized when they are recorded as assets (rather than as expenses).

Which of the Following Statements About Capitalizing Costs Is Correct