Which two of the following actions would be classed as 'capitalisation'?
A) Removing funds from the equity capital to create 'profit' in the balance sheet
B) Taking an item of expenditure on to the balance sheet and capitalising it as an asset
C) Taking an item of expenditure and writing it against profit as an expense
D) Increasing the firm's capital by issuing shares

Question

Quizplus · Accepted Answer

The Answer of Which two of the following actions would be classed as 'capitalisation'?
A) Removing funds from the equity capital to create 'profit' in the balance sheet
B) Taking an item of expenditure on to the balance sheet and capitalising it as an asset
C) Taking an item of expenditure and writing it against profit as an expense
D) Increasing the firm's capital by issuing shares

Which Two of the Following Actions Would Be Classed as 'Capitalisation