Hi,

Let say the company is rental of machine as income of company. What the entry of account when purchase of new machine? Is then the machine is consider as purchase of machine or fixed asset?

Thank you.

When is the purchase of a machine not the purchase of a fixed asset?

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Originally Posted by paraclete

when is the purchase of a machine not the purchase of a fixed asset?

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In what situation only consider as purchase of fixed asset?

Thank you.

A fixed asset is an asset which has a life of more than one year and may be directly or indirectly income producing. The term purchase refers to any acquisition whether fixed asset or operational supply. In English it is a term meaning to exchange money or value for goods or services