The cost of a long-term asset is expensed
A)when it is paid for.
B)as the asset benefits the company.
C)in the period in which it is acquired.
D)in the period in which it is disposed of.

Question

Quizplus · Accepted Answer

The cost of a long-term asset is expensed as the asset benefits the company. This is because the asset is a long-term investment that will provide benefits to the company over a period of time. The cost of the asset is therefore spread out over the period of time that the asset is expected to benefit the company.

The Cost of a Long-Term Asset Is Expensed