Which of the following expenditures would be expensed on an income statement immediately when incurred? a)...
Which of the following expenditures would be expensed on an income statement immediately when incurred?
a) capital expenditure
b) cash expenditure
c) revenue expenditure
d) All of the above would be expensed immediately when incurred
A company purchased land for $80,000. They were required to pay back taxes of $5,000 and incurred legal fees of $2,000. They also paid $250,000 to build a warehouse on the land. What is the cost of the land that would be recorded on the balance sheet?
a) $337,000
b) $80,000
c) $85,000
d) $87,000
Homework Answers
|
1. Option C Revenue expenditures are expensed in the period they are incurred. Capital expenditures are expensed over many periods through the depreciation |
|
2. Option D Cost of land = 80,000 + 5,000 + 2,000 = 87,000 |
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select
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No.
Transactions
Account
1.
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machinery purchased
$ 5,000
select one from the following: Insurance Expense or Land or
Buildings or Equipment or Architect’s Fees or Tax Expense or
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2.
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select
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