When calculating the dollar amount of fixed assets purchased during the year what information is required? Assume that no fixed assets were disposed of during the year.

Question

Quizplus · Accepted Answer

To calculate the dollar amount of fixed assets purchased during the year, you can use either the change in gross fixed assets (option A) or the change in net fixed assets plus the depreciation expense for the year (option C). Both methods account for the addition of new fixed assets, with option C adjusting for the depreciation to give an accurate purchase figure.

When Calculating the Dollar Amount of Fixed Assets Purchased During