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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.

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Answers (2)
  1. 2 September, 20:34
    0
    B is the correct answer and I'm not just saying that
  2. 2 September, 20:47
    0
    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.
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Home » Business » 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.
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