From an accounting standpoint, the acquisition of long-lived assets is essentially a(n)
A)accrual of expense.
B)accrual of revenue.
C)accrual of deferred revenue.
D)prepayment for services.

Question

Quizplus · Accepted Answer

Acquiring long-lived assets is considered a prepayment for services or benefits that the asset will provide over its useful life, rather than an immediate expense or revenue recognition.

From an Accounting Standpoint, the Acquisition of Long-Lived Assets Is