D&R Products forecasts that it will require $10,000 for equipment and depreciation will be over five years. The $10,000 will be reflected in the balance sheet as
A) inventory.
B) gross fixed assets.
C) net fixed assets.
D) accounts payable.

Question

Quizplus · Accepted Answer

The $10,000 spent on equipment will be reflected in the balance sheet as gross fixed assets because it represents a long-term investment in physical assets before accounting for depreciation.

D&R Products Forecasts That It Will Require $10,000 for Equipment