Asked by Brookelyn Pfleging on May 23, 2024
Verified
Interest on money borrowed to finance construction of new office building
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements
Long-Lived Assets
Assets that are expected to provide economic benefits to a business for a period longer than one year, such as buildings, machinery, and equipment.
Interest
Interest is the cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage of the principal amount.
- Comprehend the principles of capitalizing expenses related to the acquisition or construction of long-term assets.
Verified Answer
MF
Learning Objectives
- Comprehend the principles of capitalizing expenses related to the acquisition or construction of long-term assets.