Avis rent-a-car purchases a large number of cars each year, Financial Accounting

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Avis rent-a-car purchases a large number of cars each year

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.

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Financial Accounting: Avis rent-a-car purchases a large number of cars each year

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Financial Accounting: Avis rent-a-car purchases a large number of cars each year

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