30 - FR&A - Long-lived Assets Flashcards
1
Q
LOS 30.A - Define capitalizing an asset.
A
Capitalizing involves depreciating or amortizing the asset’s cost over its useful life. Capitalize if there is a future economic benefit.
2
Q
LOS 30.A - Define expensing an asset.
A
Expensing results in an immediate reduction of net income. Immediately expense if the future benefit in unlikely or highly uncertain.
