ACCOUNTING for Everyone

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Tag: Capitalising

  • When to Capitalize Instead of Expense a Purchase

    When to Capitalize Instead of Expense a Purchase

    When a business makes a purchase, one of the most important decisions to make is whether to capitalize or expense it. Capitalizing a purchase means adding it to the company’s balance sheet as an asset, while expensing it means deducting it from the company’s income statement as a cost. The decision to capitalize or expense…

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