The manager of TruColor Printers Inc.has purchased a sophisticated printing press for $1 million.Which of the following statements is most likely to be true about the printing press?

Question

Quizplus · Accepted Answer

The most likely scenario is that the printing press will be depreciated over its useful life, which means that its cost will be allocated over several years in order to match the expense with the revenue generated by the asset. This is the most common accounting treatment for long-term assets such as machinery and equipment. Options B, C, and D are not relevant or likely in this context, as the purchase of a printing press is not an expense that can be charged in one year, it does not necessarily require processing before use, and it may be bought directly from the manufacturer instead of from retailers.

The Manager of TruColor Printers Inc