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What factors should company consider when making decision

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Reference no: EM132979510

When a company makes an expenditure that is neither a payment to a creditor nor a distribution to an owner, management must decide if the expenditure should be capitalized (recorded as an increase in an asset) or expensed (recorded as an expense thereby decreasing owners' equity).

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Problem 1: What factors should the company consider when making this decision to capitalize or expense the expenditure?

Reference no: EM132979510

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