Tammy Company paid cash to purchase a long-term operational asset. The cost of the asset will be expensed (depreciated)
A)on the day it is purchased.
B)at the end of its useful life.
C)over the useful life of the asset.
D)when the asset is sold.

Question

Quizplus · Accepted Answer

The cost of the asset will be allocated over the useful life of the asset through depreciation expense. This matches the matching principle, which requires that expenses be recognized in the same period as the related revenues.

Tammy Company Paid Cash to Purchase a Long-Term Operational Asset