Final answer:
Capitalizing a cost means to record it as an asset. Capitalized assets can be depreciated. Capitalizing costs does not result in an immediate decrease in net income. Option C is correct..
Step-by-step explanation:
The correct statement about capitalizing is: C. Capitalizing a cost means to record it as an asset. Capitalizing costs refers to the process of adding costs to the balance sheet as an asset, rather than recording them as expenses on the income statement. When costs are capitalized, the assets can be depreciated over time. Capitalizing costs does not result in an immediate decrease in net income, as the costs are spread out over the useful life of the asset.
Capitalizing a cost means to record it as an asset on the company's balance sheet, rather than expensing it immediately on the income statement. Doing so allows a business to spread the cost of the asset over its useful life, reflecting the duration over which the asset contributes economic value to the firm. This practice is known as depreciation, and it applies to capitalized assets.