In a business is furniture considered an asset or expense?

Question

In a business is furniture considered an asset or expense?

Answer 1

It may be an expense when you start out .. if you have to buy furniture ... but once it's paid for it's an asset of the business.

Answer 2

Furniture is an asset.  Unless the business deals in furniture.

Answer 3

Furniture is considered both an expense and an asset.  It is an expense at first because you need furniture to run your company, you don't want your client to walk into a bare office, that would look unprofessional.  Being an expense helps out around tax time, make sure you keep that receipt, you will pay less GST at year end because you spent GST on that purchase, plus it will make your revenue go down (which looks good, because the less revenue it looks like you make the less takes you have to pay at the end of the year).

After the furniture is paid for, it is an asset because you can sell it for money if needed.