Which of the following costs would be excluded from the acquisition cost of equipment purchased from a supplier?
a. The cost to widen an entrance in the building to bring the equipment into the facilities.
b. Cost to install the equipment.
c. A purchase discount offered by the supplier.
d. The cost of freight paid to get the equipment to our factory.
What Are Fixed Assets:
A company's Fixed Assets are reported as part of the Non-Current Assets section on the Balance Sheet. Fixed Assets are those that the company intends to use for multiple reporting periods to help sustain the operations of the company and generate income.
Answer and Explanation: 1
The correct answer is a. The cost to widen an entrance in the building to bring the equipment into the facilities.
- Although this is a necessary cost...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
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.