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Explain why the outlay of cash or incurrence of a liability used to purchase property which will be used for longer than one year must
Explain why the outlay of cash or incurrence of a liability used to purchase property which will be used for longer than one year must be recorded as an asset on the balance sheet rather than an expense on the income statement. How does this cost, capitalized on the balance sheet as an asset, eventually become an income expense on the income statement?
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