Costs for purchasing new equipment intended for long-term use are immediately expensed in the period they are incurred.
True
False
This statement is False. Costs for purchasing new equipment intended for long-term use are considered capital expenses (CapEx). These costs are not expensed immediately; instead, they are capitalized and depreciated over the asset's useful life. This accounting treatment aligns the expense recognition with the period over which the asset generates benefits. Immediate expensing is characteristic of operational expenses (OpEx), which are costs for day-to-day operations like utilities or office supplies.
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