in accounting, capitalized assets are categorized as having economic value that will benefit future periods of time. However, any asset that is expensed is categorized as having an economic value that has been consumed in order to create revenue in the current period of time. The former is reported on the balance sheet and the latter on the income statement of the business. For this assignment, select one of the organizations with a prominent IT department example Apple or Microsoft (google for 2015 and 2016 income statements). Once identified, provide the following information that you will share, hypothetically, with an IT director for whom you are consulting: Share an analysis of the accounting challenges or accomplishments the organization seems to have faced with its categorization of expenses versus capitalization. Describe the potential effects of capitalization and expenses. Some areas worth examining are the net income, stockholders' equity, cash flow from operations, assets reported on the balance sheet, and financial ratios. Analyze at least two perceived needs of the organization at the time and justify the reasons for your claims (e.g., are assets expensed versus capitalized in an effort to lower taxes, or are more loans/investments secured in an effort to increase business value).