Assets are the cornerstone of financial reporting; often it is unclear whether an expenditure is an asset or an expense. For each of the transactions described below, consider whether the expenditure should be recorded as an asset or as an expense. Assume all items are material.

(a)		Akamu Limited operates an oil change shop and buys windshield washer fluid to top up customers reservoirs.		select an option It is an asset when held and is treated as expense when usedIt is an expense as soon as it is purchasedIt is an expense when held and treated as asset when used
(b)		John & John Massage Therapists pay $600 to a receptionist for taking appointments and issuing receipts to clients.		select an option AssetExpenses
(c)		On October 1, Alan & Cheng, Chartered Professional Accountants, pay $500 to a local snow removal service for the upcoming winter season.		select an option The expenses are recognized at the beginning of the periodIt is an asset when established and expense when service performed
(d)		Luca Inc. is a contractor that cuts trees for the local sawmill. Luca pays $1,000 for a chainsaw.		select an option ExpensesAsset
(e)		Pharma Inc. incurs legal fees of $5,500 for registering a patent for its product.		select an option ExpensesAsset
(f)		Delhi Florists pays $4,500 for shipping charges for the delivery of flowers to its premises.		select an option AssetExpenses
(g)		Sports Starts Here Inc. spent $4,500 installing hardwood floors in its leased store located in a mall.		select an option