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.

---

Definitions:

Building Codes

Regulations set by local or national governments dictating the standards for construction practices and materials.

Exhaust Hoods

Devices designed to capture and vent airborne contaminants, steam, and combustion products from the air in kitchens, laboratories, and industrial facilities.

Indoor Air Pollution

Indoor air pollution is the contamination of indoor air by pollutants from various sources like building materials, furnishings, and activities inside, potentially causing health issues for inhabitants.

Secondary Pollutants

Pollutants that are not emitted directly into the air; they form in the atmosphere when primary pollutants react chemically with other substances.