If a company constructs an asset over a period of time and borrows money, the amount of interest incurred during construction on the borrowed money is
a. capitalized as part of the cost of the plant asset.
b. amortized over the construction period.
c. reported as interest expense on the income statement.
d. reported as depletion on the income statement.
a
You might also like to view...
Which of the following is not considered a general expense?
a. utilities expense; b. rent expense; c. telephone expense; d. office supplies expense; e. sales salaries expense.
Which one of the following adjustments decreases net income for the period?
A) Recognition of depreciation on plant assets. B) Recognition of interest earned on a note receivable. C) Recognition of services that had been provided to customers but the cash has not yet been received. D) Recognition of rent earned that had been received in advance from customers.
When cooperative pragmatists are negotiating genuine trust is needed between the negotiators
Indicate whether the statement is true or false.
There are both fee-based and commission-based financial planners
Indicate whether the statement is true or false.