Final answer:
The claim that a company will always capitalize the cost of a long-lived asset according to GAAP is false, as this applies only for costs that extend the asset's life or value, not routine maintenance or repairs.
Step-by-step explanation:
The statement that a company will always capitalize the cost of a long-lived asset in accordance with US Generally Accepted Accounting Principles (GAAP) is false. While many long-lived asset costs are capitalized, this is not a blanket rule. For example, routine maintenance and repairs that do not extend the useful life of the asset or increase its value are generally expensed as incurred. Conversely, costs that improve the asset, extend its life, or adapt it to a new use are typically capitalized. This distinction is important for a company to properly align its expenses with the benefits derived from the asset over time, which is a fundamental principle of accrual accounting under GAAP.