Which of the following would not be included in the Equipment account?
A)Installation costs
B)Freight costs
C)Cost of trial runs
D)Electricity used by the machine

Question

Quizplus · Accepted Answer

Electricity used by the machine is an expense account and not a part of the Equipment account which only includes the cost of acquiring the machine. Installation costs, freight costs and cost of trial runs are all directly related to the acquisition and installation of the equipment and thus are included in the Equipment account.

Which of the Following Would Not Be Included in the Equipment