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1. In this chapter, you learned that when a company incurs a cost, its accountants have to decide whether to record it as an asset

1.In this chapter, you learned that when a company incurs a cost, its accountants have to decide whether to record it as an asset or expense. When costs are recorded as an asset, they are said to be capitalized. This builds on ideas first presented in Chapter 2, where you learned that it is appropriate to record costs as assets provided that they possess certain characteristics. What are those characteristics?

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