If a company buys an asset that will be used for more than one accounting period,an expense associated with the asset will be recognized ________.

Question

Quizplus · Accepted Answer

The expense associated with a long-term asset, such as depreciation or amortization, is recognized over the periods in which the asset is used to generate revenue, rather than in the period of purchase or sale, or only when the company has a profit.

If a Company Buys an Asset That Will Be Used