Discuss the accounting treatment of expenditures after acquisition.

 

Discuss the accounting treatment of expenditures after acquisition.

 

  1. Capitalize expenditures if they benefit ________ periods.
    1. Additions
    2. Improvements
    3. Legal defense of intangible assets, if successful
  2. Expense expenditures if they benefit only the _______period.
    1. Repairs and maintenance
  3. Materiality
    1. Would the item influence an investor or creditor’s decision?
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