Capitalizing vs Expensing Explained. Financial Accounting ch 8 p 4
Channel: Farhat Lectures. The # 1 CPA & Accounting Courses
Date: 2020-03-27

IN this video, I discuss capitalizing vs expensing. Expensing a cost indicates it is included on the income statement and subtracted from revenue to determine profit. Capitalizing indicates that the cost has been determined to be a capital expenditure and is accounted for on the balance sheet as an asset, with only the depreciation showing up on the income statement.

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