Ask Question
BusinessBusiness
25 November, 11:25

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.

+3
Answers (2)
  1. 25 November, 12:17
    0
    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.
  2. 25 November, 12:59
    0
    B is the correct answer and I'm not just saying that
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is true? a. Capitalized costs decrease stockholders' equity. b. Capitalized costs increase long-lived assets. c. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
effect of doubtful accounts on net income. During its first year of operations, fisher plumbing supply Co. had sales of $2,780,000, wrote off $16,000 of accounts as uncollectible using the direct write-off method and reported net income of $120,000.
Answers (1)
Suppose Mr. Lane just bought a share of BlueWind Co., a renewable energy startup. BlueWind promises to pay Mr. Lane $18 in dividends for one year and then the firm will shut down.
Answers (1)
Budget constraints impose scarcity, and are based upon the limitation of the budget. how much utility one more unit of a good will provide. the prices of the items purchased. previousnext
Answers (1)
A developer buys vacant land in the city and wants to put houses on it. How would the subdivision be identified?
Answers (1)
Army officers use the expression "not in my lane", which derives from the basic marksmanship function of establishing firing lanes indicating who fires at which targets.
Answers (2)
New Questions in Business
A company's Accounts Receivable balance at its December 31 year-end is $125,650, and its Allowance for Doubtful Accounts has a credit balance of $328 before year-end adjustment. Its net sales are $572,300.
Answers (1)
The account type and normal balance of unearned revenue would be a. expense, debit b. revenue, credit c. asset, debit d. liability, credit
Answers (1)
Suppose the target rate of unemployment is 5 percent but the actual rate of unemployment is 4 percent. Given this information, which of the following policies is most appropriate according to the AS/AD model? A. A tax cut. B.
Answers (2)
Marcus Nurseries Inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share.
Answers (1)
Describe how you will operate your business in terms of your involvement
Answers (1)
Home » Business » 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.
Sign Up Forgot Password?