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.

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Definitions:

Berries

Small, pulpy, and often edible fruits, typically containing multiple seeds.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services translate into levels of satisfaction or utility.

Budget Constraint

The limitation on the consumption of goods and services imposed by a consumer's income and the prices of those goods and services.

Income

The total amount of money received by an individual or group over a specific time period, coming from various sources like wages, investments, or government assistance.