Capitalizing an Expenditure Rather Than Recording It as a Revenue

question 150

Multiple Choice

Capitalizing an expenditure rather than recording it as a revenue expenditure

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

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