Question

Purchase of pen by the business will be treated as an Asset or an Expense? 2 Give reason in support of your answer.

Answer 1

Answer:

normally it will be treated as an expense but the nature of business plays a crucial role.

for example - if you have a business of stationary items then it will be treated as an asset . on the other hand, if the business is related to bakery shops or any kind of business then it will be treated as an expense.