It is common to distinguish between whether an asset acquisition is “capitalized” versus “expensed”. What does...

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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jeff jeffy answered 2 years ago

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