Under ASPE The historical cost of long-term assets
Select one:
a. Becomes larger over the life of the asset
b. Becomes smaller over the life of the asset
c. Remains unchanged from the time they are purchased to the time they are sold
d. Is irrelevant when recording purchases of capital assets
Solution:
Under ASPE The historical cost of long-term assets "Remains unchanged from the time they are purchased to the time they are sold"
Hence option c is correct.
Under ASPE The historical cost of long-term assets Select one: a. Becomes larger over the life...
Usingthe historical cost concept, long-term assets are recorded at Select one: a. fair value b. market value c. none of the choices d. the amount paid for the item
The purpose of a long-term asset contra account is to: Select one: a. Reduce the asset, but at the same time not affecting owner’s equity b. Use it as a temporary account c. Present a higher net income d. Always reflect the original value (historical cost) of the asset on the balance sheet
Tangier Company paid cash to purchase a long-term operational asset. The cost of the asset will be expensed (depreciated). Multiple Choice on the day it is purchased. at the end of its useful life. over the useful life of the asset. when the asset is sold
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