Capitalizing an Expenditure Rather Than Recording It as a Revenue

Multiple Choice

Capitalizing an expenditure rather than recording it as a revenue expenditure

A) affects the total book value of plant assets reported on the balance sheet and the amount of net income reported during a period.
B) affects the total book value of plant assets on the balance sheet, but has no effect on the amount of net income reported during an accounting period.
C) affects the amount of net income reported during an accounting period, but has no effect on the total book value of plant assets on the balance sheet.
D) has no effect on the book value of plant assets on the balance sheet or the amount of income reported on the income statement.