Which of the following statements is correct concerning interest expenditures incurred during the period of construction of capital projects?
A. The capitalization of interest expenditures as part of the cost of general capital assets reported in the capital projects fund is optional.
B. Interest expenditures must be capitalized as part of the cost of general capital assets reported in the capital projects fund.
C. Interest expenditures may not be capitalized as part of the cost of general capital assets reported in governmental activities.
D. Interest expenditures may be capitalized as part of the cost of general capital assets reported in the governmental activities accounts at the government-wide level.
Answer: C
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Which of the following fundamental offensive strategic market plans is most likely be pursued in the core strategy of invest to enter new markets?
A) enter new market segment B) improve customer loyalty C) develop new markets D) build marketing advantage E) expand market demand
Which of the following is a true statement?
a. Research is supportive of the contention that cash and funds flow data are informative above and beyond accrual data. b. Use of the direct method in the cash flow statement frequently results in non-articulation. c. Interest expense and long-term notes payable both appear in the financing section of the cash flow statement. d. With SFAS No. 95, the FASB chose to follow the entity model rather than the traditional income statement (proprietary) approach.
Explain how to forecast expenses.
What will be an ideal response?
Which of the following is not a reason why upward communication is important?
A) It provides feedback to let receivers know that lateral messages have been received and understood. B) It helps managers recognize whether lower-level employees received and correctly interpreted downward messages. C) It gives managers information they need to make critical decisions. D) It provides opportunities for employees to offer input, make suggestions, and air grievances. E) It allows information to flow from lower levels to higher levels of the organization.