alleryStart learning →Capitalised costs are charged to profit over the asset's life through
Awriting off of bad debts
Bannual depreciation charges
Ccreation of a general reserve
Dpayment of equity dividends
Answer & Solution
Correct answer: B. annual depreciation charges
Capitalised amounts are spread over the useful life by depreciation for tangible and amortisation for intangible assets.
Keep practising Accounting Concepts
Browse all Accounting Concepts questions for CA Foundation, or explore more Accounting topics.
Related questions
Forensic accounting engagements arise fromFinancial statements published after the period ends are mainlyManagement accounting also covers future-oriented items such asWhich audit firm was dissolved after the Enron scandal?The Sarbanes-Oxley Act of 2002 followed the admissions of fraud atPreventing and detecting fraud is primarily the duty ofAn intentional misstatement in accounting records involving deception isWhich accounting field aims to give an independent opinion on financial statements?