When a firm purchases a truck, with depreciation taken on the truck and reported on the income statement for that year and succeeding years, the amount paid for the truck purchase at the time of purchase is known as (an) ____________ .
A) Expense
B) Expenditure
C) Both
D) Neither

Question

Quizplus · Accepted Answer

The amount paid for the truck at the time of purchase is known as an expenditure. Depreciation of the truck is considered an expense and is reported on the income statement over the truck's useful life.

When a Firm Purchases a Truck, with Depreciation Taken on the Truck