Algorithmic deliberate practice: classify purchases as capitalize or expense with streak tracking and reteach guidance.
Capitalize or Expense? — Mastery Practice
Practice classifying TechStart's purchases until you can do it reliably. Each round gives you a new scenario. Get 5 correct in a row to achieve mastery.
You will see a purchase description. Decide whether TechStart should capitalize it (record as an asset) or expense it (record as a current-period cost).
- Each round generates a new purchase scenario with different numbers
- You get feedback after each submission — not during
- If you get it wrong, you will see a brief explanation of the correct reasoning
- Click "New Numbers" to try again immediately
- Track your streak and mastery progress at the top
Remember the rule: Capitalize if the item lasts more than 1 year AND the cost is significant. Otherwise, expense it.
TechStart pays $102 for cleaning supplies.
Capitalize When...
- Item lasts more than 1 year
- Cost is significant
- It is equipment, vehicles, buildings, or major improvements
Expense When...
- Item is used up within the current period
- It is a routine operating cost
- It is rent, utilities, supplies, or minor repairs
After this practice, you will take a short exit ticket to confirm your understanding of capitalization vocabulary and reasoning. Then you will reflect on what you learned and preview the straight-line depreciation method coming in Lesson 03.