Capitalizing Costs That Should Be Expensed

question 39

Multiple Choice

Capitalizing costs that should be expensed:

• A)is a practice mostly found in large, well-established companies.
• B)usually has no effect on net income.
• C)has the effect of increasing net income by the same amount of the capitalized costs.
• D)is a healthy practice if they written off shortly after the transaction takes place.

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