Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.

Question

Mulligan

Business

2 September, 20:23

Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.

+5

Answers (2)

Know the Answer?

Mylie Lam · Answer 1

B is the correct answer and I'm not just saying that

Hudson Burgess · Answer 2

B) Capitalized costs increase long-lived assets.

Explanation:

Capitalized costs refers to cost associated with the purchase of a fixed asset. Capitalized costs increase the cost basis of the fixed assets since they are added to the purchase cost. E. g. a company buys a new machine, besides the cost of the machine itself, the cost basis must include delivery charges, installation charges, etc.

Which of the following is true?a. Capitalized costs decrease stockholders' equity.b. Capitalized costs increase long-lived assets.c. Expenses increase assets.d. Expenses increase stockholders' equity.

Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.