Which of the following is true of expense items purchased by organizational buyers?

Question

Quizplus · Accepted Answer

Expense items purchased by organizational buyers are typically charged against the income of the company in the year of purchase. These expenses are not considered long-lived business assets that require depreciation over time, and they are not included in determining the net income of the company. Major expenses such as setting up new plants, equipment, and machinery may be classified as capital expenditures rather than expense items.

Which of the Following Is True of Expense Items Purchased