From an accounting standpoint the acquisition of productive facilities can be thought of as a long-term
A) accrual of expense.
B) accrual of revenue.
C) accrual of unearned revenue.
D) prepayment for services.

Question

Quizplus · Accepted Answer

The acquisition of productive facilities is considered a prepayment for services because it represents an upfront investment in assets that will provide economic benefits over a long period. This is not an immediate expense, revenue, or unearned revenue, but rather a capital investment in the business's operational capacity.

From an Accounting Standpoint the Acquisition of Productive Facilities Can