Question

what is capitalized expense in simple terms?
Answer
what is it in simple terms?
Answered by GPT 3.5
Capitalized expense refers to a cost that is recorded as an asset on a company's balance sheet instead of being immediately recognized as an expense on the income statement. This means that the cost is spread out over a period of time and is considered an investment in the company's long-term assets. By capitalizing an expense, the company acknowledges that the cost will generate future economic benefits and can be depreciated or amortized over its useful life.
Answered by GPT 3.5
In simple terms, a capitalized expense is a cost that a company treats as an investment in its long-term assets rather than an immediate expense. It means the cost is recorded as an asset and spread out over time, rather than being deducted from the company's income immediately. This helps the company recognize the future economic benefits the expense will bring and allows them to depreciate or amortize the cost over its useful life.