Generally,freight costs incurred when a long-lived asset is purchased should be:
A)expensed in the period incurred.
B)deducted from the Accumulated Depreciation account.
C)added to the cost of the asset.
D)not recorded in the accounts.

Question

Quizplus · Accepted Answer

The general rule for tangible assets under the cost principle is that all reasonable and necessary costs to acquire and prepare an asset for use should be recorded as a cost of the asset.Freight costs are a necessary and reasonable cost of acquiring an asset and should be added to the cost of the asset.

Generally,freight Costs Incurred When a Long-Lived Asset Is Purchased Should