Question

Fly high pilot training academy owns several planes used for instruction to new pilots. it follows accrual basis accounting. when it acquires a new plane it will record it as a(n)

Answer 1

It will record the new plane as an asset, probably Property, Plant and Equipment. In order to recognize the expense of the plane over time, it will try to figure out the useful life (in years or miles), and depreciate using that timeline (each year, or mile, will represent a depreciation expense amount).