Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.

Question

Business

Lane Glenn

20 February, 15:36

Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.

+4

Answers (2)

Know the Answer?

Aldo Ruiz · Answer 1

B) Capitalized costs increase long-lived assets.

Explanation:

Capitalized costs refers to cost associated with the purchase of a fixed asset. Capitalized costs increase the cost basis of the fixed assets since they are added to the purchase cost. E. g. a company buys a new machine, besides the cost of the machine itself, the cost basis must include delivery charges, installation charges, etc.

Dillan · Answer 2

B is the correct answer and I'm not just saying that

Which of the following is true?a. Capitalized costs decrease stockholders' equity.b. Capitalized costs increase long-lived assets.c. Expenses increase assets.d. Expenses increase stockholders' equity.

Which of the following is true?

a. Capitalized costs decrease stockholders' equity.

b. Capitalized costs increase long-lived assets.

c. Expenses increase assets.

d. Expenses increase stockholders' equity.