The cost of a depreciable long-lived asset is expensed
A) when it is paid for.
B) as the asset benefits the company.
C) in the period in which it is acquired.
D) in the period in which it is disposed of.

Question

Quizplus · Accepted Answer

The cost of a depreciable long-lived asset is expensed as the asset benefits the company. This is because the asset is expected to provide benefits over multiple periods, so its cost should be spread out over those periods.

The Cost of a Depreciable Long-Lived Asset Is Expensed