Borrowing cost can be capitalized as cost of the assets when

Q: Define the term capital expenditure.

A:

Q: Assets are usually valued under which basis? A. replacement cost B. historical cost C. net…

A: In terms of accountancy, an asset can be defined as a business resource which can be utilized to…

Q: Describe the Capital Expenditure process

A: Capital expenditure as the term suggest is a one time usually a balance sheet item. Usually a…

Q: What is the calculation for return on assets (ROA)? Explain what ROA measures?

A: ROA is the abbreviation used for Return on Assets. It a common accounting term and this is usually…

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: What type of capital is accounts receivable? Group of answer choices Human. Intangible Physical.…

A: Accounts receivables are the current assets of an entity. These can be converted into cash within a…

Q: How do you calculate book value as it relates to fixed assets?

A: Book Value is the cost of carrying an asset on a company's balance sheet.

Q: Explain financial asset held for trading

A: There are many types of assets held by a firm on its balance sheet. Each type of asset has different…

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: What is a donated capital and how it is accounted?

A: Donated capital is defined as assets given as gift to the entity.

Q: Asset utilization ratios describe how capital is being utilized to buy assets

A: Assets refer to the resources that the company owned in the organization and utilized for the…

Q: What are the Return on Total Assets?

A: Return on total assets: Return on total assets (ROTA) is a ratio that calculates a corporation's…

Q: Define capital expenditure

A:

Q: What assets are viewed as current financial resources?

A:

Q: Which of the following is typically recorded at its present value? a. long-term investments b.…

A: Present value is the worth of any asset or liability that is more in the present as compared to the…

Q: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

Q: What is the Principle of Investing in Financial Assets?

A: A financial asset is a liquid asset that gets its value from an authoritative right or guarantee to…

Q: Explain how capital budgeting handles a gain or loss on disposal

A: This question explains about capital budgeting handles a gain or loss on disposal:

Q: Sale of an capital assets

A: Sale of an capital assets is subject to CAPITAL GAIN.

Q: Differentiate between a capital investment and an expense investment

A: Investment refers to the allocation of the funds in the assets in order to get returns. The…

Q: What are assets in finance?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: What is the difference between capital expenditure and revenue expenditure? Give an example of each.

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Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: e amortized cost for a financial asset

A: Amortized cost is the amount at which financial assets are reported on Balance Sheet.

Q: When does the Capital expenditures occur?

A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…

Q: Explain an example how to calculate rate of return on total assets.

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Q: Real property held for investment is a capital asset. True or false

A: Real Estate Property Held for Investment is A capital Assets.   Real estate property held for…

Q: Sale of an capital assets is subject to

A: Option a is wrong because regular income tax is applied in case of income from salary, business or…

Q: The amount to be capitalized should be:

A: Answer:   Option a.

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: The book value of an asset is defined as ______

A: The Answer

Q: Capitalizing a cost means to record the cost into a(n) a. contributed capital. O b. asset. Oc.…

A: Capitalization represents the cost of an asset recorded over a period of time. Whereas, when the…

Q: Cost of Capital depends on its components and cost associated with its components’. Justify the…

A: The cost of capital repersent of company repersent its cost of financing. It referes to minimum rate…

Q: capital expenditure or a revenue expenditure.

A: Answer – Capital expenditures are those expenditure which improves the performance of assets and…

Q: compare ordinary assets from capital assets

A: Ordinary Assets:-  A per tax code Ordinary Assets are the assets which are held by the tax payer for…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: The elements of financial statements which contain the financial information about an organization…

Q: Borrowing costs that are acquisition, construction or production of a qualifying asset are a…

A: IAS 23 borrowing cost says that if any interest is paid on a loan, which is taken to construct a…

Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.

A: Investment property is land or a building (including a part of a building) or both that is: →held to…

Q: Define the term Return on Total Assets? What does it measure?

A: