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Firm may capitalize expenses to 1- increase profit in the period 2- to get lower tax duites 3- increase of revenue 4- all answers are false

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Question ajoutée par Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date de publication: 2015/03/06
Hani ALQUDAH
par Hani ALQUDAH , Collections Executive , Social Security Corporation

expense capitalizing impacts the financial statements by spreading the cost among more than one operating period, resulting in: increasing income (shareholder's equity and retained earnings) per every operating period, getting cash-flow from operations to be smoother, increasing total assets in the financial position for more than a period then a larger working capital amount will be presented (improves company's credit).

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