The cost of an asset with a useful life exceeding one year can be
A)Expensed immediately
B)Capitalized until disposal
C)Capitalized with part of the costs deducted annually
D)All of the above are possible depending on the asset

Question

Quizplus · Accepted Answer

The cost of an asset with a useful life exceeding one year can be treated in different ways depending on accounting policies and the nature of the asset. It can be expensed immediately under certain conditions (e.g., if it's a minor cost or for certain types of businesses), capitalized until disposal (recognizing the asset on the balance sheet and depreciating it over its useful life), or capitalized with part of the costs deducted annually through depreciation or amortization.

The Cost of an Asset with a Useful Life Exceeding