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Is it true that the original cost of a plant asset includes only the amount paid the vendor for the plant asset?
It is the amount of time it takes for you to cause an erect plant to ejaculate. You do not count the time where the plant is flaccid. You begin counting the cost of the asset once it has become erect.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is the term applied to the periodic expiration of a plant asset's cost?
Amortization
Why is a plant asset recorded at cost?
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
Dfine the cost of plant assets?
The cost of plant assets, also known as property, plant, and equipment (PP&E), includes all expenditures necessary to acquire the asset and prepare it for its intended use. This encompasses the purchase price, shipping and handling fees, installation costs, and any other expenses directly related to bringing the asset to operational condition. Additionally, costs for improvements or upgrades that extend the asset's useful life may also be included. However, routine maintenance and repairs are typically expensed as incurred and not capitalized as part of the asset’s cost.
Is it true that the original cost of a plant asset includes only the amount paid the vendor for the plant asset?
It is the amount of time it takes for you to cause an erect plant to ejaculate. You do not count the time where the plant is flaccid. You begin counting the cost of the asset once it has become erect.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is a plant asset on the balance sheet?
Plant asset is the machinery asset which a business use to make units of products for selling purpose to generate revenue for business.
What is the term applied to the periodic expiration of a plant asset's cost?
Amortization
Interest may be included in the acquisition cost of a plant asset?
yes
What is plant asset Discuss the three types of plant asset?
Property, plant, and equipment
Why is a plant asset recorded at cost?
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
Dfine the cost of plant assets?
The cost of plant assets, also known as property, plant, and equipment (PP&E), includes all expenditures necessary to acquire the asset and prepare it for its intended use. This encompasses the purchase price, shipping and handling fees, installation costs, and any other expenses directly related to bringing the asset to operational condition. Additionally, costs for improvements or upgrades that extend the asset's useful life may also be included. However, routine maintenance and repairs are typically expensed as incurred and not capitalized as part of the asset’s cost.
What is the formula for equity method?
dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET
Does the Depreciation measure the actual decline in market value of an asset?
No. Depreciation is the process of allocating to expense the cost of a plant asset.
Is recording a plant asset for the amount paid an application of the matching expenses with revenue concept?
Yes, recording a plant asset for the amount paid reflects the matching principle by aligning the asset's cost with the revenue it generates over time. By capitalizing the cost of the plant asset, businesses can allocate its expense through depreciation, matching those expenses against the revenues produced during its useful life. This ensures that financial statements accurately reflect the relationship between costs and revenues, providing a clearer picture of profitability.
In accounting what is the life expectancy of a plant asset?
In accounting, the life expectancy of a plant asset, also known as its useful life, is the period over which the asset is expected to be used in operations. This duration can vary based on factors like the asset's type, industry standards, and maintenance practices. Companies typically estimate the useful life to determine depreciation, which allocates the asset's cost over its expected lifespan. Generally, useful lives for plant assets can range from a few years to several decades, depending on the asset's nature and application.
