Capitalization refers to the practice of including all costs incurred to prepare an asset for use as a component of the asset. So the answer in given option is Capitalized costs decrease stockholders' equity.
A cost is included in the value of an asset using the accounting technique known as capitalization, and is then deducted during the asset's useful life rather than being deducted at the time the cost was incurred. Market capitalization is another term for the overall market value of a firm and is defined as the number of outstanding shares multiplied by the share price.
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