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    Jinnys's Avatar
    Jinnys Posts: 9, Reputation: 1
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    #1

    Oct 12, 2012, 01:29 AM
    Fixed asset versus purchases
    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.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Oct 12, 2012, 05:00 AM
    When is the purchase of a machine not the purchase of a fixed asset?
    Jinnys's Avatar
    Jinnys Posts: 9, Reputation: 1
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    #3

    Oct 14, 2012, 06:28 PM
    Quote Originally Posted by paraclete View Post
    when is the purchase of a machine not the purchase of a fixed asset?
    In what situation only consider as purchase of fixed asset?

    Thank you.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #4

    Oct 14, 2012, 08:41 PM
    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
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