dimpy.handa
Dimpy Handa
Expenses can be expensed as they are incurred, or they can be capitalized. A company is able to capitalize the cost of acquiring a resource only if the resource provides the company with a tangible benefit for more than one operating cycle. In this regard, these expenses represent an asset for the company and are recorded on the balance sheet.
What is the fundamental issue surrounding capitalization versus expensing?
Which approach do you believe management would prefer?
Which approach do you believe auditors would prefer? Why?
What is the fundamental issue surrounding capitalization versus expensing?
Which approach do you believe management would prefer?
Which approach do you believe auditors would prefer? Why?