Costs are said to have been "capitalized" when:

Name: Costs are said to have been "capitalized" when:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When costs are capitalized, they are recorded as assets on the balance sheet rather than expenses on the income statement. This means that they are recognized as having long-term value to the company and can be amortized or depreciated over time. Financing by the company or calculating the worth of the asset based on revenue generated are not necessarily requirements for capitalizing costs.

Costs Are Said to Have Been "Capitalized" When