FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Introduction
Capitalized Cost:
Capitalized cost is an expense that is added to the cost basis of fixed assets on a company's balance sheet. Capitalized costs are not expensed in the period they were incurred but recognized over a period of time via depreciation or amortization.
Expense Incurred:
An incurred expense is a cost that a business incurs when it purchases goods or services on credit. For example, the purchase may be made either through credit.
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