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Indicate Whether Each of the Following Statements Is True or False

Question 32

Matching

Indicate whether each of the following statements is true or false.

Premises:
The matching concept requires that plant assets be recorded at the amount paid for the assets.
Sales taxes paid on the purchase of equipment would be expensed in the year of the purchase.
Delivery charges on equipment would be expensed in the year of the purchase.
Real estate fees and attorney's fees related to the purchase of a building would be added to the cost of the building.
Payment of a fine for improper burning of a demolished building would be added to the land account.
Responses:
True
False

Correct Answer:

The matching concept requires that plant assets be recorded at the amount paid for the assets.
Sales taxes paid on the purchase of equipment would be expensed in the year of the purchase.
Delivery charges on equipment would be expensed in the year of the purchase.
Real estate fees and attorney's fees related to the purchase of a building would be added to the cost of the building.
Payment of a fine for improper burning of a demolished building would be added to the land account.
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