Accountancy, asked by tenkar444, 3 months ago

when do we need to capitalize the expenses in the accounting​

Answers

Answered by gaganarhak9781
2

Answer:

Expensing a cost indicates it is included on the income statement and subtracted from revenue to determine profit. Capitalizing indicates that the cost has been determined to be a capital expenditure and is accounted for on the balance sheet as an asset, with only the depreciation showing up on the income statement.

Explanation:

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