Which of the following expenditures would be most suspicious if it were capitalized?
A) Equipment purchases
B) Computer purchases
C) Prepaid expenses
D) Salaries to the top management

Question

Quizplus · Accepted Answer

Capitalizing salaries to the top management would be unusual and potentially suspicious, as typically salaries are considered an expense to be recognized in the period they were incurred. Equipment, computer purchases, and prepaid expenses are commonly capitalized expenses.

Which of the Following Expenditures Would Be Most Suspicious If