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Tammie Ritch
on Oct 28, 2024

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Under GAAP, which one of the following types of costs should not be capitalized?

A) rearrangements
B) routine maintenance
C) replacements
D) additions

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies use to compile their financial statements.

Routine Maintenance

Regular, scheduled work done on equipment, machines, or systems to prevent unexpected breakdowns and to keep them operating efficiently.

Capitalized

The process of recording a cost or expense on the balance sheet for the purposes of spreading out the expense over the useful life of an asset, rather than charging it to expense all at once.

  • Develop comprehension of how expenses for self-constructed assets are capitalized.
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Fatima AlshamsiNov 04, 2024
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