Interest is capitalized when incurred in connection with the construction of plant assets because
a. interest is considered a part of the acquisition cost of the related plant asset.
b. the decision to purchase a plant asset is a business decision separate from the financing decision.
c. many plant assets last longer than 20 years.
d. interest is considered an expense of the period.
a
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Which topic is usuallyOMITTED from the product or service description?
a. Potential sources of materials and components b. Protection of the business concept c. Competitive forces in the industry d. Stage of product development e. None of thesetopics (a-d)
When estimating the impact of a capital project on a pro forma balance sheet, one should note that financing can come from a variety of sources
The resources can include new debt, increases in current liability accounts, and cash retained through operations. Indicate whether the statement is true or false.
Hanes is launching a new advertising campaign. Within the first six months of the campaign, the media planners want the new advertisement's _____ to be 25% of the target market and the _____ to be four times.
A. reach; frequency B. goal; multiplier C. exposure; repetition D. range; rate E. impact; recurrence
A small retailer buys goods from a vendor with an invoice amount of $9,100. The terms of the sale are 2/10, n/30. What is the net amount due on the goods if the bill is paid by the 10th day?
A) $182 B) $8,918 C) $8,640 D) $910