Borrowing costs on qualifying assets are? a) Always expensed b) Capitalized during the construction period c) Added to reserves d) Deducted from the asset cost

Which of the following statements is true regarding capitalization of interest? O When excess borrowed funds not immediately needed for construction are temporarily invested, any interest earned should be offset against interest cost incurred when determining the amount of interest cost to be capitalized. O The minimum amount of interest to be capitalized is determined by multiplying a weighted average interest rate by the amount of average accumulated expenditures on qualifying assets during the period. O The amount of interest cost capitalized during the period should not exceed the actual interest cost incurred. O Interest cost capitalized in connection with the purchase of land to be used as a building site should be debited to the land account and not to the building account.

Describe  accounting for depreciation of fixed assets?

the amortization of intangible assets with finite useful lives is justified by the : a- economic entity assumption  b- going concern assumption  c- monetary unit assumption d- historical cost assumption

Fixed assets are ordinarily presented on the balance sheet OO at their current market value under "Intangible assets" at their cost less accumulated depreciation at their replacement cost

The amortization process is like what other process? A. depreciation B. valuation C. recognizing revenue D. capitalization

(Multiple Choice Question) Amortizable Cost refers to   1. An asset's Net Book Value minus its Accumulated Amortization   2. The added cost of a capital asset after undergoing a capital improvement   3. The portion of the cost of the asset that will amortize over its useful life   4. The entire cost of a capital asset

Define amortization expense

The cost incurred to extend an asset's useful life is recorded as: O a. routine expenditures. Ob. capital expenditures. Oc. accrued expenditures. Od. maintenance expenditures.

1. What factors must a company consider when choosing an amortization method to use for a fixed asset? Be sure to refer to IFRS and the effect of the decision on the financial statements. 2. What is the Capital Cost Allowance and how does it affect the amortization of assets?