To "capitalize" an expenditure means to charge it to an asset account. True False

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To capitalize an expenditure means to charge it to an asset account. True False

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Answer 1

Answer #1

Answer : True

Explanation: By capitalizing an expenditure an entity wants to amortize that cost in long term rather than fully recognizing it as one year expense. Thus to capitalize expenditure is as good as addition to an asset.

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Answer 2

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To "capitalize" an expenditure means to charge it to an asset account. True False