Acc 304 Week 4 Quiz 3

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ACC 304 WEEK 4 QUIZ 3
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ACC 304 WEEK 4 QUIZ 3
ACC 304 Week 4 Quiz 3 - Strayer University NEW
ACC 304 Week 4 Quiz 3 All Questions Included.

TRUE-FALSE—Conceptual 1. Assets classified as Property, Plant, and Equipment can be either acquired for use in operations, or acquired for resale. 2. Assets classified as Property, Plant, and Equipment must be both long-term in nature and possess physical substance. 3. When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of the new building. 4. Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment. 5. Special assessments for local improvements such as street lights and sewers should be accounted for as land improvements. 6. Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset. 7. Companies should assign no portion of fixed overhead to self-constructed assets. 8. When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must be included. 9. Assets under construction for a company’s own use do not qualify for interest cost capitalization. 10. Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset. 11. When a company purchases land with the intention of developing it for a particular use, interest costs associated with those expenditures qualify for interest capitalization. 12. Assets purchased on long-term credit contracts should be recorded at the present value of the consideration exchanged. 13.…...

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