Computers taken on hire by a business for a period of twelve months should be classified as:___________?
Correct answer: D. Not an asset
- A. Current assets
- B. Intangible assets
- C. Deferred revenue expenditure
- D. Not an asset
Explanation
A computer merely taken on hire is normally treated as a hired service or lease expense rather than an owned asset in traditional accounting MCQs. It is therefore not classified as a current or intangible asset.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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