Freight costs paid on the purchase of new equipment. Are classified as:
B. Machinery and Equipment
D. Land Improvements
Costs are classified into capital costs and revenue costs. It is important to understand how a particular cost is to be classified since the accounting treatment of the same would depend on the classification of the costs. Generally, costs incurred for fixed assets are classified as capital assets.
Answer and Explanation: 1
The correct answer to this question is B. Machinery and Equipment
When a new asset is procured, any costs incurred in order to put the asset to...
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fromChapter 3 / Lesson 10
Learn the definition of fixed assets and examine their importance. Explore the various types of fixed assets, identify their characteristics, and see examples.