Fire extinguishers are safety expenses by any business. They are thus used by the company when required in emergencies. These emergencies may arise may be in a year or after that. It is mostly considered as a fixed asset expense as they are stored by the companies for safety for longer period. Subsequently, question is, is fire extinguisher an office …
Best Answers. Rustler. Level 15. 05:58 PM. Unless that is a rechargeable fire extinguisher I would use office or shop expense depending on where it is located. A rechargeable fire extinguisher might be an asset depending on cost. Salt/sand is an office or shop expense. View solution in original post.
Is fire extinguisher an asset or expense? – Answers
A portable fire extinguisher is durable equipment accounted as a capital asset. Testing, maintenance and refill of an extinguisher is an operating expense. Wiki User
The fire extinguisher should be treated as a revenue expenditure reason being. As per Para 6.1 of AS 10 "Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business". The fire extinguisher is not used for the purpose of producing or providing goods.
People Also Ask is fire extinguisher an asset or expense
Is a fire extinguisher an asset or a revenue expenditure?
It should be treated as revenue expenditure because as per my knowledge the fire extinguisher contains expiry. It does not stays for a substantial period of time like an asset. & even the fire extinguisher does not generate any income for a business which is main pre condition for an item to be called as an asset. Click to see full answer.
What expense category does a fire extinguisher go under?
In this way, what expense category does a fire extinguisher go under? Fire extinguishers are safety expenses by any business. They are thus used by the company when required in emergencies. These emergencies may arise may be in a year or after that.
Can fire extinguisher be capitalized as fixed asset?
As per Para 6.1 of AS 10 "Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business" The fire extinguisher is not used for the purpose of producing or providing goods. Thus it cannot be capitalized.
People Also Searches is fire extinguisher an asset or expense
Why Fire Extinguishers Are Important Video Answer
Reference:
https://www.usfa.fema.gov/
https://en.wikipedia.org/wiki/Fire_extinguisher