D & R Products forecasts that it will require R10 000 for equipment and depreciation will be over five years.The R10 000 will be reflected in the statement of financial position as _____.
A)inventory
B)gross fixed assets
C)net fixed assets
D)trade payables

Question

Quizplus · Accepted Answer

The R10 000 for equipment will be reflected as gross fixed assets in the statement of financial position, as it represents the initial cost of acquiring the fixed asset before accounting for depreciation.

D & R Products Forecasts That It Will Require R10