When determining whether to record an asset as a fixed asset, what two criteria must be met?
A) Must be an investment and must be long lived.
B) Must be long lived and must use the asset in a productive manner.
C) Must be short lived and must be a tangible asset.
D) Must be a tangible asset and must be an investment.

Question

Quizplus · Accepted Answer

In order to be recorded as a fixed asset, an asset must be both long lived and used in a productive manner. The other options either have incorrect criteria or are too narrow in their requirements.

When Determining Whether to Record an Asset as a Fixed