Question

Which of the following statements is (are) accurate regarding equipment purchased within a business?

a. Equipment is reported on the left side of the accounting equation.
b. Equipment purchases are reported on the balance sheet.
c. Equipment cost is initially recorded as an asset and as it is used and gets worn down, the cost is gradually expensed.
d. Equipment purchases are expensed, in their entirety, in the period in which they occur.

Answer 1

Equipment is an asset is correct. No doubt, equipment is an asset - a noncurrent asset. Therefore, the correct options are all except option d.

Equipment purchases are not recorded as an expense in a single year but rather over the course of the equipment's life. Depreciation is the term for this. Equipment is viewed from an accounting perspective as capital assets or fixed assets, which are used by the company to turn a profit.

Equipment is a noncurrent asset, often known as a fixed asset. A long-term investment made by your organization that is unlikely to or does not easily convert to cash within an accounting year is referred to as a noncurrent asset. In general, property, plant, and equipment are considered fixed assets (PP&E).

To know more about equipment visit here:

brainly.com/question/17228897

#SPJ4