Hi CDS,

To the best of my knowledge, they are treated as long-term assets.

Written below is a link for more information about current assets (cash) and long-term assets (land, buildings, equipments, etc)

http://www.dummies.com/how-to/content/balance-sheet-accounts-current-assets-longterm-ass.html

Hope this helps.

I'm not sure if there is actually a required threshold it may be an idea to review with the accountant, but in general for items over $500 I would allocate to a capital asset account and any smaller purchases I would just allocate to a general inventory account.  This will help keep the accumulated amortization more accurate when year end is processed.  Hope this helps!

I have currently separated them into "Staging Accessories"  and "Staging Furniture" to make it more accurate with the acc. amort. I will discuss it with her and have her talk to her accountant and see what he suggests. Thank you.

Sometimes it's best if you were to talk to the accountant rather than your client and then getting 2nd hand info from her. Being in the accounting industry you and the accountant would think alike on same terms whereas the client may not quite understand and give you misinformed instructions.