Which of the Following Statements Is True with Respect to Capitalizing

question 45

Multiple Choice

Which of the following statements is true with respect to capitalizing asset costs?

• A)All additional costs related to acquiring an asset should be expensed.
• B)Land cannot be depreciated so it should just be expensed when acquired.
• C)When costs are capitalized,the company gets the tax deduction immediately.
• D)Some small expenses related to the purchase of an asset can be expensed for simplicity.

---

Definitions:

Kyoto Protocol

An international treaty that commits its parties to reduce greenhouse gas emissions, based on the premise that global warming exists and human-made CO2 emissions have caused it.

Geneva Conventions

A series of international treaties formulated to ensure humane treatment of individuals during war, including prisoners, wounded soldiers, and civilians.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico that established a trilateral trade bloc in North America.

Foreign Policy Tools

Various means a country uses to achieve its foreign policy objectives, including diplomacy, economic aid, military intervention, and international treaties.