An item of property, plant and equipment was acquired for $250,000 on 120-day terms. At the time of acquisition, which of the following statements regarding the $250,000 is correct? A.It is not a cost, nor an expenditure, nor an expense. B.It is a cost, but not an expenditure nor an expense. C.It is a cost and an expense, but not an expenditure. D.It is a cost and an expenditure, but not an expense. E.It is an expenditure, but not a cost nor an expense.
An item of property, plant and equipment was acquired for $250,000 on 120-day terms. At the time of acquisition, which of the following statements regarding the $250,000 is correct? A.It is not a cost, nor an expenditure, nor an expense. B.It is a cost, but not an expenditure nor an expense. C.It is a cost and an expense, but not an expenditure. D.It is a cost and an expenditure, but not an expense. E.It is an expenditure, but not a cost nor an expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An item of property, plant and equipment was acquired for $250,000 on 120-day terms.
At the time of acquisition, which of the following statements regarding the $250,000 is correct?
A.It is not a cost, nor an expenditure, nor an expense.
B.It is a cost, but not an expenditure nor an expense.
C.It is a cost and an expense, but not an expenditure.
D.It is a cost and an expenditure, but not an expense.
E.It is an expenditure, but not a cost nor an expense.
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