From an accounting standpoint, the acquisition of production equipment can be thought of as a long-term
A) accrual of expense.
B) accrual of revenue.
C) accrual of unearned revenue.
D) prepayment for services.

Question

Quizplus · Accepted Answer

The acquisition of production equipment is considered a long-term prepayment for services because it involves a capital expenditure that will provide benefits over multiple accounting periods.

From an Accounting Standpoint, the Acquisition of Production Equipment Can