When a company spends money on a plant asset, it must decide whether to record an asset or an expense.

Question

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When a company spends money on a plant asset, it must decide whether to record it as an asset (such as equipment or property) or as an expense (such as repairs or maintenance). The decision is typically based on whether the asset will provide future economic benefits to the company beyond the current accounting period.

When a Company Spends Money on a Plant Asset, It