Chapter 3
Long-Term Assets
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AS-3 (
1
)
What are the three characteristics of long-term assets?
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AS-4 (
2
)
What is meant by a lump sum purchase of assets? How are costs allocated when the purchase
of assets is a lump sum purchase?
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AS-5 (
2
)
After the initial purchase of a long-term asset, additional costs may be incurred. What criteria
are used to assess whether these costs are regarded as an expense or an addition to assets?
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