Unformatted text preview: b.i. Cost principle- record plant assets at cost. b.ii. Cost consists of all expenditures necessary to require an asset and make it ready for its intended use (i.e. purchase price, freight costs, installation costs…) b.iii. Revenue expenditures- a cost not included int a plant assets account that must be expensed immediately b.iv. Capital Expenditures- costs that are not expensed immediately but are included in a plant asset account...
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- Winter '08
- Fixed Assets, Generally Accepted Accounting Principles, I. Plant Assets