Based on accounting principles, when a company capitalizes on a cost, its long-lived assets increase.
This is because long-lived assets are assets that a business enterprise uses for more than one year. It is mainly used for many years.
Long-lived assets are sometimes described as long-term assets. Because the business owners only pay for them once, it is believed that the company capitalizes on its cost to produce more commodities or services.
Hence, in this case, it is concluded that the correct answer is "long-lived assets."
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