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Fixed, Inc. purchases a $80,000 truck with an estimated useful life of 5 years and no salvage value. Which of the following statements is TRUE
Fixed, Inc. purchases a $80,000 truck with an estimated useful life of 5 years and no salvage value. Which of the following statements is TRUE regarding this truck? a. The purchase of the truck is a capital expenditure. b. In the 5th year, when the truck is brought to the junkyard, the company should record an expense of $80,000 on the income statement and reduce assets by $80,000 on the balance sheet. c. The matching principle requires the company to expense the entire $80,000 value of the truck in the year of purchase. d. Depreciation causes Cash from operating activities on the statement of cash flows to decrease. e. More than one of these is true. ( I need an expert to asnwer the Q )
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