The capitalization on expenditure is to increase the revenue account. Thus option (B) is correct.
Accounting is not pure mathematics. Simple multiplication, division, and addition are involved. There might be a little elementary algebra, but that's it. You are not required to comprehend calculus.
A cost or expense is capitalized when it is recorded on the balance sheet with the intention of postponing the expense's full realization. In general, capitalization costs are advantageous since businesses can amortize or depreciate them when they incur new assets with long lifespans. Capitalization is the term for this action. accounts
Therefore, Thus option (B) is correct.
Learn more about accounts here:
https://brainly.com/question/22917325
#SPJ1
