A Construction Company Purchased a Piece of Equipment with a Price

question 179

Multiple Choice

A construction company purchased a piece of equipment with a price of $100,000 on March 1 of the current year. The amounts are related to the equipment purchase. Match the items and explain how each item should be accounted for. (Choices may be used more than once.)
-The cash purchase was made on March 8 with terms of 2/10, net 30.

• A)This item should be included as part of the cost of the equipment.
• B)This item should be considered a revenue expenditure.

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Definitions:

Practicing Stewardship

The responsible overseeing and protection of something considered worth caring for and preserving, often relating to environmental or resource management.

Articulating A Vision

The process of clearly expressing a future direction or goal of an organization or group to inspire and guide stakeholders.

Power Hungry

Having an insatiable desire for control, authority, or influence over others.

Loyal Followers

Individuals who consistently support and remain faithful to a leader, brand, or organization over time.