How should the amount of interest capitalized be disclosed in the notes to the financial statements? How should interest revenue from temporarily invested excess funds borrowed to finance the construction of assets be accounted for?

Which of the following assertions is relevant to whether the cash balances reflect the true underlying economic value of those assets? a. Existence/occurrence. b. Completeness. c. Rights and obligations. d. Valuation or allocation. e. All of the above.

Classification of Interest Expense. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an operating activity but classifies cash expenditures to redeem debt as a financing activity. Explain this apparent paradox.

How should the amount of interest capitalized be disclosedin the notes to the financial statements? Howshould interest revenue from temporarily invested excessfunds borrowed to finance the construction of assets beaccounted for?

How can we check the balance sheet to determine the extent to which borrowed funds have been used to finance assets?

Under what conditions should investments be classified as current assets? As long-term assets?

Which of the following is an External sources of finance? a.Depreciation funds b.Retained earnings c.Loans from Banks and Financial institutions d.Surplus

Which of the following transactions is revenue expenditure? A Expenditure resulting in improvements to property B Expenditure on heat and light C Purchasing non-current assets D Repaying a bank overdraft