1.

Fences and parking lots are reported on the balance sheet as

a. Current assets
b. Land improvements
c. Land
d. Property, plant and equipment

2. Historical cost is the basis advocated for recording the acquisition of property, plant and
equipment for all of the following reasons except

a. At the date of acquisition, cost reflect fair value

b. Property, plant and equipment items are always acquired at their original historical cost
c. Historical cost involves actual transaction and, as such, is the most reliable basis
d. Gains and losses should not be anticipated but should be recognized when the asset is
sold