Funds borrowed and used to pay for an asset are not included in the cost until the borrowed funds are repaid. Group of answer choices True False
The given statement is false.
It is included irrespective of whether it is paid or not since it was taken to acquire an asset.
Funds borrowed and used to pay for an asset are not included in the cost until...
When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be O recognized as revenue of the period O multiplied by an appropriate interest rate to determine the amount of interest to be capitalized O used to reduce the cost of assets being constructed. O offset against interest cost incurred during...
14) For a cash method taxpayer, expenses paid with borrowed funds are deductible in the year in which the loan is repaid. True or False 15) In general, a CPA on the cash basis method will never have a bad debt deduction. True or False 16) A cash-basis taxpayer may deduct prepaid business expenses currently regardless of the period of time to which the expenses relate. True or False 17) A cash-basis taxpayer must always include checks in income in...
An example of an implicit cost is the O A. payment of interest on borrowed funds OB. lost interest received on funds used for a business invesetment. OC. wages employees receive. OD. cost of purchasing a new threshing machine.
Which of the following is not a capital asset? Group of answer choices Mutual funds. Your human capital. Bank account . Your home.
How are the funds used which are provided by FUTA and SUTA? a. SUTA funds are used to pay the state and federal administrative expenses and FUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. b. FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. c. All of the funds are used to provide the...
How are the funds used which are provided by FUTA and SUTA? a. SUTA funds are used to pay the state and federal administrative expenses and FUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. b. FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. c. All of the funds are used to provide the...
part 1) The less dense stage of a soil borrowed to fill is typically found in: Group of answer choices Final compacted soil Dump truck None of the answers is correct Borrow pit part2 ) Cohesive soils typically do not use Relative Density to evaluate compaction: Group of answer choices True False
What costs are included in determining the total cost of an asset? Why would a company include more than jyust the purchase price of an asset? Some argue that companies depreciate assets because they lose value. From a financial accounting perspective, is this true? Why or why not?
The coefficient of variation measures how risky an asset is per unit of return, and therefore it can be used to help an investor choose between assets with different returns and different standard deviations (risk). Group of answer choices True False
The maturity matching approach to current asset financing uses long-term funds to finance all permanent asset requirements. TRUE OR FALSE