What is the term for recording costs as assets rather than as expenses? Describe how the decision

Question:

What is the term for recording costs as assets rather than as expenses? Describe how the decision to record costs as assets rather than expenses affects the balance sheet and income statement in the period the costs are incurred and in future periods.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Fantastic news! We've Found the answer you've been seeking!