D&R Products forecast that it will require $10,000 for equipment and $40,000 for a building. These items will be reflected in the balance sheet as _____.
A) inventory
B) net fixed assets
C) current assets
D) gross fixed assets

Question

Quizplus · Accepted Answer

Gross fixed assets refer to the total value of a company's fixed assets before accounting for depreciation. The equipment and building costs are capital expenditures that will be recorded as gross fixed assets on the balance sheet.

D&R Products Forecast That It Will Require $10,000 for Equipment