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It is common to distinguish between whether an asset acquisition is capitalized versus expensed . What does this mean, i.e. what does capitalized mean and

It is common to distinguish between whether an asset acquisition is capitalized versus expensed. What does this mean, i.e. what does capitalized mean and what does expensed mean? From a value perspective, given that value is fundamentally the present value of future cash flows, given the choice, which alternative would be preferred? When an asset is capitalized, this is generally an application of which of the 4 basic principles underlying GAAP? Explain.

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