In general,a cost incurred in conjunction with a long-term asset is included in the long-term asset account when the cost
A)is incurred subsequent to asset use.
B)exceeds a certain dollar amount.
C)is incurred prior to asset use.
D)will expire in less than one year.

Question

Quizplus · Accepted Answer

The cost incurred in conjunction with a long-term asset is included in the long-term asset account when the cost is incurred prior to asset use. This is because the cost is necessary to get the asset ready for use and should be capitalized as part of the asset cost.

In General,a Cost Incurred in Conjunction with a Long-Term Asset