Question

The amount recorded for the purchase of long-lived tangible assets is the Blank______. (Check all that apply.)

a) invoice price less shipping costs
b) net cash equivalent amount paid or to be paid
c) acquisition cost
d) cash equivalent price

Answer 1

The amount recorded for the purchase of long-lived tangible assets is referred to as the C) acquisition cost, which includes the invoice price and additional necessary costs, and can also be known as the net cash equivalent amount or cash equivalent price.

Step-by-step explanation:

The amount recorded for the purchase of long-lived tangible assets is commonly known as the acquisition cost. This cost typically includes the invoice price of the asset, plus any additional costs necessary to get the asset ready for its intended use, such as freight and handling, installation, and any import duties. It may also be referred to as the net cash equivalent amount paid or to be paid. The term cash equivalent price might be used interchangeably with acquisition cost if the payment is made in cash or cash equivalents.