Multiple Choice
Which statement is true about a company's choice of capitalization policy?
A) All assets with a useful life of more than one year must be capitalized.
B) The company's policy must meet the minimum capitalization amounts established by GAAP.
C) The company's policy is determined relative to materiality and the cost of maintaining asset records.
D) The company may elect to capitalize operating expenses which exceed the minimum threshold for asset capitalization.
Correct Answer:
Verified
Correct Answer:
Verified
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