The Decision to Expense or Capitalise an Item Is Important

Multiple Choice

The decision to expense or capitalise an item is important because.

A) It may have direct implications for the value of the organisation and wealth of managers.
B) It may impact on contractual arrangements that are based on accounting numbers related to profits and/or assets.
C) It may give managers scope to maximise personal wealth, in line with Positive Accounting Theories.
D) The decision should only be based on providing an unbiased report of the company.
E) All of the given answers.