Purchases a large number of cars each year

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Avis Rent-a-Car purchases a large number of cars each year for its rental fleet. The cost of any individual automobile is immaterial to Avis, which is a very large corporation. Would it be acceptable for Avis to charge the purchase of automobiles for its rental fleet directly to expense, rather than to an asset account? Explain.

 

 

Reference no: EM13913502

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