Accounting Online Program Certification Practice Test

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Prepare for the Accounting Online Program Certification Test. Use flashcards and multiple choice questions with detailed explanations. Ace your accounting certification exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What was the price of the new machine purchased by Exe plc?

£30,000
£35,000
£40,000
£45,000

The correct answer is: £40,000

The price of the new machine purchased by Exe plc is £40,000. This figure typically reflects the actual cost incurred during the purchase, which may include the base cost of the machine along with any additional charges such as delivery fees, installation costs, or taxes that are essential to get the machine ready for operational use. When determining the price of an asset for financial accounting purposes, it's important to consider all relevant costs that contribute to the acquisition. Therefore, £40,000 not only signifies the purchase price but also provides a comprehensive view of the total costs incurred by the company. Understanding how to calculate the total acquisition cost is crucial in accounting, as it affects asset valuation and subsequent depreciation calculations. The other choices likely do not represent this total acquisition amount or may reflect incorrect interpretations of related costs or calculations. This reinforces the importance of attention to detail when assessing such financial transactions.