1The major ethical issues surrounding the recording of assets have to do with how assets are defined. 2One of the key concepts surrounding the definition of an asset is that it must provide...

1The major ethical issues surrounding the recording of assets have to do with how assets are defined.

2One of the key concepts surrounding the definition of an asset is that it must provide future benefit.

3If a company incurs an expense, but treats it as an asset, net income would be understated.

4Many companies have gotten into trouble by recording costs as expenses, rather than capitalizing them.

5Which of the following is a common ethical dilemma related to fixed assets?

A) Choosing whether to repair or replace an older asset

B) Choosing whether an asset should be capitalized or expensed

C) Choosing the useful life on an asset

D) Choosing which depreciation method to use