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Chapter 18, Problem 1TF
To determine

Indicate whether the given statement is true or false.

Expert Solution & Answer
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Answer to Problem 1TF

The given statement is false.

Explanation of Solution

Long-term assets: The assets which are used to generate revenue for the business operations for a number of accounting periods are referred to as long-term assets.

Description: All the long-term assets wear-out gradually, except land. Land is the long-term asset that has unlimited useful life, hence, it is not depreciated. Land is the long-term asset that cannot be consumed completely. Hence, the statement is false.

Conclusion

Thus, the given statement is false as long-term assets either wear out gradually or consumed completely.

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Chapter 18 Solutions

Bundle: College Accounting, Chapters 1-27, Loose-leaf Version, 22nd + Cengagenowv2™, 2 Terms Printed Access Card For Heintz/parry's College ... Set For College Accounting, 22nd + Cenga

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