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Fundamental Accounting Principles

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Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all.
Treatments
A. Record the expenditure as an asset and depreciate it.
B. Record the expenditure as an asset and amortize it.
C. Record the expenditure as an asset and deplete it.
D. Record the expenditure as an asset but do not systematically allocate it to expense.
E. Record the expenditure as an expense in the current period.
F. None of the above is appropriate.
Expenditures
____ 1. Acquired a truck.
____ 2. Purchased a patent from an inventor.
____ 3. Paid for minor repairs to a building.
____ 4. Purchased a producing gold mine.
____ 5. Paid attorney's fees in acquiring land.

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This question involves the fundamentals of accounting

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Hi there,
<br>
<br>_B___ 1. Acquired a truck.
<br>_A___ 2. Purchased a patent from an inventor.
<br>_E___ 3. Paid for minor repairs to a building.
<br>_C___ 4. Purchased a producing gold ...

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