what is a cellphone , an asset or an expense?

yeimmyc15

If the company buys one cellphone for an employee, this will be an expense ? or an asset?

davealucas

Technically it is an asset, however, if the value of the phone is low when compared to the company's value it may be considered as an expense.

Just for example, a calculator is technically an asset but at a value of say £5, it is a bit pointless listing it as an asset for such a low value. in such circumstances you may want to place it in your expenses in, say, stationary