Capitalizing an Expenditure Rather Than Recording It as a Revenue

question 150

Multiple Choice

Capitalizing an expenditure rather than recording it as a revenue expenditure

• A)impacts the total book value of plant assets reported on the balance sheet and the amount of net income reported during a period.
• B)impacts the total book value of plant assets on the balance sheet, but has no effect on the amount of net income reported during an accounting period.
• C)impacts the amount of net income reported during an accounting period, but has no effect on the total book value of plant assets on the balance sheet.
• D)has no impact on the book value of plant assets on the balance sheet or the amount of income reported on the income statement.

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Definitions:

Impulses

Sudden, involuntary urges to act, often without premeditation and sometimes contrary to individual's conscious wishes or societal norms.

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the back, transmitting neural signals between the brain and the rest of the body.

Brain

The organ of the central nervous system in vertebrates located in the skull that is responsible for neural processing, including perception, emotions, thinking, and planning.