Capitalizing an Expenditure Rather Than Recording It as a Revenue

question 183

Multiple Choice

Capitalizing an expenditure rather than recording it as a revenue expenditure

• A)affects 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.
• B)affects 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)affects the total book value of plant assets reported on the balance sheet and the amount of net income reported during a period.
• D)has no effect 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:

S. Cerevisiae

Saccharomyces cerevisiae, commonly known as baker's yeast, is a species of yeast used in baking, brewing, and scientific research.

Edible Fruiting Body

The portion of a fungus that is safe and suitable for consumption, which typically grows above ground and contains spores.

Infects Flies

The process by which pathogens or parasites invade and multiply within fly populations, causing disease.

Lignin-Reinforced

Lignin-Reinforced refers to plant tissues strengthened by lignin, a complex organic polymer that provides rigidity and resistance to decay.