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

Question

Quizplus · Accepted Answer

A: Equipment is generally considered an asset
B: Similar to above, computers could be considered assets
C: Though payment for expenses, when paid before the expenses are incurred, pre-paids are considered assets
D: Salaries, regardless for who, are generally considered expenses in the period incurred

Which of the Following Expenditures Would Be Most Suspicious If