Which category do you think the website development costs would go - ProProfs Discuss
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Which category do you think the website development costs would go under?



A. Assets
B. Equity
C. Expenses

This question is part of Chart of Accounts Quiz
Asked by Beginbookkeep, Last updated: Mar 19, 2020

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3 Answers

ET

ET, NC

Answered Feb 21, 2018

I just researched this a bit and according to GAAP, certain development costs can be capitalized and amortized as assets, while others must be expensed as they are incurred. From what I gather, preliminary costs in the planning stages and operating costs after implementation are treated as expenses. However, the costs to purchase a domain name (though hosting costs, if through a 3rd party provider, are recurring expenses), costs of software, hardware, code and application development can be treated as assets and amortized with straight-line depreciation. I hope this helps.

 

John Adney

John Adney

Answered Jan 18, 2017

Hi John ,
Can you help me to explain why that cost belong to Asset not Expense because I think it is Cost for Website developing so it belongs to Operating Cost
Regards,
Phuong
 

John Smith

John Smith

Answered Nov 11, 2016

Assets
 

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