Question: Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all.

Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all. Treatments A. Record the expenditure as an asset and depreciate it. B. Record the expenditure as an asset and amortize it. C. Record the expenditure as an asset and deplete it. D. Record the expenditure as an asset but do not systematically allocate it to expense. E. Record the expenditure as an expense in the current period. F. None of the above is appropriate. Expenditures ____ 1. Acquired a truck. ____ 2. Purchased a patent from an inventor. ____ 3. Paid for minor repairs to a building. ____ 4. Purchased a producing gold mine. ____ 5. Paid attorney's fees in acquiring land. Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all. Treatments A. Record the expenditure as an asset and depreciate it. B. Record the expenditure as an asset and amortize it. C. Record the expenditure as an asset and deplete it. D. Record the expenditure as an asset but do not systematically allocate it to expense. E. Record the expenditure as an expense in the current period. F. None of the above is appropriate. Expenditures ____ 1. Acquired a truck. ____ 2. Purchased a patent from an inventor. ____ 3. Paid for minor repairs to a building. ____ 4. Purchased a producing gold mine. ____ 5. Paid attorney's fees in acquiring land

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!