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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Definitions:

B. F. Skinner

An influential American psychologist known for his work in behaviorism, specifically the development of the theory of operant conditioning.

Wilhelm Wundt

Often considered the father of modern psychology, he established the first psychology laboratory at the University of Leipzig, marking the separation of psychology from philosophy.

Control Behaviour

Refers to the management or regulation of one's actions or reactions in various situations.

Humanist

A person who advocates for the values of human welfare, dignity, and rationalism, often emphasizing the importance of human values and concerns.