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  • 11-04-2022
  • Business
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Capitalizing the cash cost of a piece of equipment is.

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Аноним Аноним
  • 11-04-2022

Answer:

converting it to an asset on the balance sheet.

Explanation:

Capitalizing a cost means converting it to an asset on the balance sheet. For example, if a company pays $10,000 in cash for piece of equipment, its financial statements don't show that it "spent" $10,000. Rather, they show that it converted $10,000 worth of cash into $10,000 worth of equipment, an asset.

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