Asked by beyonce logan on May 01, 2024
Verified
Which of the following are criteria for determining whether to record an asset as a fixed asset?
A) must be an investment and long-lived
B) must be long-lived and used by the company in its normal operations
C) must be short-lived and tangible
D) must be tangible and an investment
Fixed Asset
Long-term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year.
Long-Lived
Pertaining to assets, it refers to items that are expected to provide economic benefits over a prolonged period, generally exceeding one year.
Normal Operations
The regular, day-to-day activities carried out by a business to generate revenue and profit.
- Recognize the criteria for classifying assets as fixed assets.
Verified Answer
Learning Objectives
- Recognize the criteria for classifying assets as fixed assets.
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