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Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

A. True
B. False

1 Answer

5 votes

Answer:

The correct answer is A.true.

Step-by-step explanation:

Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

As per financial accounting standards fixed assets cost is capitalized and than depreciated over its useful life. Only that amount of asset cost is charged in profit and loss account that has been depreciated during the reporting period. However, in case of other routine expenses full amount is charged in p/l, in the period, in which these costs are incurred.

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