In accounting, what is the meaning of capitalized?
A)Capitalized means that a liability account is credited (increased)for the cost of an asset.
B)Capitalized means that an asset account is debited (increased)for the cost of an asset.
C)Capitalized means that the cost of an asset is recorded as a debit (increase)to expense.
D)Capitalized means that a given city has been selected as a government center.

Question

Quizplus · Accepted Answer

Capitalized in accounting means that an asset account is debited (increased) for the cost of an asset. This means that the cost of the asset is recorded as an asset instead of as an expense.

In Accounting, What Is the Meaning of Capitalized