The cost of longterm plant assets such as equipment is a exp

The cost of long-term plant assets, such as equipment is: a) expensed in the year the asset is purchased b) recorded initially on the balance sheet at cost, then written up or down to market value over time. c) recorded initially on the balance sheet at cost, and not written off unless the asset is sold. d) recorded initally on the balance sheet at cost, then expensed over the life of the asset through depreciation.

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Q1 The cost of long term plant assets such as depreciation is d) recorded initially on the balance sheet at cost, then expensed over the life of the asset through deprecition Q2 if a company chooses to use the fifo method of accounting for inventory the company a) must account for the inventory as though the first item purchases are the first items sold