Asked by Jesica Alarcon on Jun 26, 2024
Verified
All costs necessary to acquire an asset and make it ready for use are included in the asset account.
Asset Account
An account on a company's balance sheet that represents the value of ownership interests in assets, including tangible and intangible resources.
- Become familiar with the components and mechanisms involved in asset capitalization and the estimation of associated costs.
Verified Answer
IF
IVANNIA FLORESJun 30, 2024
Final Answer :
True
Explanation :
According to accounting principles, all costs necessary to acquire an asset and make it ready for use are included in the asset account. This includes not only the purchase price, but also any costs associated with transportation, installation, and any necessary modifications to the asset.
Learning Objectives
- Become familiar with the components and mechanisms involved in asset capitalization and the estimation of associated costs.
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