fixed assets acquisition and after acquisition cost

fixed assets are ______ or relatively permanent assets that are _____

long term, tangible

what are fixed assets used for and what are they not intended for

productive purposes and not intended for sale as part of normal operations

another name for fixed assets

tangible assets

property, plant & equipmentfi

if an item is long-lived and used in normal operations, it is a _____

fixed asset

if it is long-lived but not used in operations, it is an _____

investment

if it’s not long-lived, it should be recorded as an ______

expense

examples of fixed assets

land

land improvements

building

machinery and equipment

costs not included in acquisition

vandalism

mistakes in installation

uninsured theft

damages during unpacking or installing

fines for not obtaining proper permits

revenue expenditure

benefits current period only c

capital expenditure

improves or extends useful life of asset

depreciation

periodic transfer of the cost of a fixed asset to expense

JE for depreciation

DR depreciation expense

CR accumulated depreciation