All costs to get an asset in place and ready for use should be:
A)expensed.
B)capitalized.
C)recorded as construction in progress.
D)recorded only when they are paid in cash.

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.Accountants say costs have been capitalized when they are recorded as assets (rather than as expenses).

All Costs to Get an Asset in Place and Ready