Comparing the Effects of Capitalizing & Expensing


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Marking an item against the profits of a company at the time that it is purchased is known as which one of the following?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. Delineating a purchase as an asset of the company is referred to as _____.

2. Which of the following is a benefit of capitalizing a purchase?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Find out what you know about capitalizing versus expensing with this worksheet and quiz. The quiz will test you on certain accounting principles and how to categorize purchases.

Quiz & Worksheet Goals

These study tools will guide you to:

  • Name the term for marking an item against a company's profits when it is purchased
  • Understand what delineating a purchase as a company asset is referred to as
  • Recognize a benefit of capitalizing a purchase
  • Identify how to categorize the purchase of post-it notes
  • Explain how the purchase of a computer should be categorized

Skills Practiced

Use the following study skills:

  • Reading comprehension - ensure that you draw the most important information from the related accounting lesson
  • Making connections - use understanding of the concept of how fast something may be used up and how it affects accounting
  • Knowledge application - use your knowledge to answer questions about capitalizing versus expensing

Additional Learning

You can explore this subject further with the lesson entitled Comparing the Effects of Capitalizing & Expensing. The lesson will cover the following study objectives:

  • Define expensing
  • Explain capitalizing
  • Understand the importance of knowing what to capitalize and what to mark as an expense
  • Examine a scenario to better understand how capitalizing and expensing affect a business