Which of the Following Statements Is True with Respect to Capitalizing

question 75

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 amortized 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:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the occurrence of desired behaviors.

Reciprocal Determinism

A perspective positing that individuals and their environment interact and influence each other.

Psychosocial

Relating to the interrelation of social factors and individual thought and behavior.