Costs are said to have been "capitalized" when:
A) they are financed by the company.
B) they are recorded as assets.
C) the company calculates the worth of the asset based on the revenue generated.
D) they are recorded as expenses

Question

Quizplus · Accepted Answer

Costs are capitalized when they are recorded as assets, meaning they are added to the balance sheet and treated as an investment in the company's future growth and earnings potential. This is often done with costs associated with acquiring, developing, or improving long-term assets such as property, plant, and equipment.

Costs Are Said to Have Been "Capitalized" When