Author Question: The amount recorded as the cost of a long-term asset includes all costs reasonable and necessary for ... (Read 30 times)

storky111 · **on:** Jul 5, 2018

The amount recorded as the cost of a long-term asset includes all costs reasonable and necessary for putting the asset in a working condition.

Indicate whether the statement is true or false

Question 2

Indicate with an X whether each description results in the reporting of a definitely determinable liability, an estimated liability or neither on the company's Balance Sheet. Assume a December 31, 2011 yearend.

Definitely determinable Estimated Neither
1. Amount owed to employees for work performed in the last week of December 2011.
2. Amount of loan payment due in 2012.
3. The estimated amount owed for utilities; the exact amount will not be known until January 2012 when the bill is received.
4. A three-year note payable due in January 2014.

What will be an ideal response?

huda · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

TRUE

Answer to Question 2

1. Definitely determinable; 2. Definitely determinable; 3. Estimated; 4. Definitely determinable