Question

Legal fees paid in connection with the purchase of land are $1,500. select between asset or expense (b) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000. select between asset or expense (c) A meat market purchases a meat-grinding machine at a cost of $3,500. select between asset or expense (d) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 months. select between asset or expense (e) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business. select between asset or expense (f) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery truck.select between asset or expense

Answer 1

Answer:

A.)Legal fees paid in connection with the purchase of land are $1,500 = ASSET

(B.) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000 = ASSET

(C) A meat market purchases a meat-grinding machine at a cost of $3,500 = ASSET

(D) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 MONTHS = EITHER ASSET OR EXPENSE

(E) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the Business = ASSET

(F) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery TRUCK = EXPENSE

Explanation:

There are various distinctions which can be made between asset and expense. However, a very distinct difference between them is that ASSET usually are regarded as those spendings which provides or offers future economic benefit to a company such as equipment purchase while EXPENSE may be classed as those spendings meant to offset a current bill such as salary or wage payment.

Answer 2

Answer:

Legal fee paid = Asset

Driveway = Asset

Meat-grinding machine = Asset

Prepaid rent = Asset

Wages for construction of buliding  = Asset

Wages for delivery truck = Expense