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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.
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What is the recordable cost of a plant asset?
The record able cost of a plant asset is most likely the cost of the plant asset at acquisition. This would include equipment costs, training of employees, sales taxes, freight costs, and the like.
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.
How is the cost principle applied to plant assets acquisitions including lump-sum purchases?
The cost principle requires that plant assets be recorded at their acquisition cost, which includes all expenditures necessary to acquire the asset and prepare it for use. In the case of lump-sum purchases, the total cost is allocated among the individual assets based on their fair market values at the time of acquisition. This ensures that each asset reflects its appropriate share of the total cost in the financial statements. Overall, the cost principle ensures that the recorded value of plant assets accurately represents the investment made in them.
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
What is the recordable cost of a plant asset?
The record able cost of a plant asset is most likely the cost of the plant asset at acquisition. This would include equipment costs, training of employees, sales taxes, freight costs, and the like.
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.
How is the cost principle applied to plant assets acquisitions including lump-sum purchases?
The cost principle requires that plant assets be recorded at their acquisition cost, which includes all expenditures necessary to acquire the asset and prepare it for use. In the case of lump-sum purchases, the total cost is allocated among the individual assets based on their fair market values at the time of acquisition. This ensures that each asset reflects its appropriate share of the total cost in the financial statements. Overall, the cost principle ensures that the recorded value of plant assets accurately represents the investment made in them.
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 cost incurrd in the formation of a corporation are not expensed as incurred but are recorded as an asset?
true of false
What is a cost of an asset minus the accumulated depreciation is?
There are a number of names for this figure,Book valueCarrying amount Essentially, it is the amount that your asset is recorded in your books as.
In accounting do you depreciate the installation of a fixed asset?
In accounting the "installation" if you are referring to the cost of having something installed is an expense and is recorded as such, that is an operating expense and is recorded as such. Since it is an expense it is not an actual asset, so can not be depreciated.
How do you account for an asset you paid less than its valued price?
Assets are recorded at the price that was paid (cost).
How is the net book value of a depreciable asset calculated?
The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.
