The Implicit Rental Rate to a Firm of Owning a Building

question 77

Multiple Choice

The implicit rental rate to a firm of owning a building is

• A)the sum of economic depreciation and forgone interest.
• B)economic depreciation only.
• C)forgone interest only.
• D)the cost of using an alternative building.
• E)the rent paid on the building.

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Definitions:

AASB 138

An Australian Accounting Standards Board standard that prescribes the accounting treatment for intangible assets not covered by other AASB standards.

Research Phase

The research phase is a stage in the development process where efforts are undertaken to acquire new knowledge or understanding without any specific application or usage in mind.

Scientific Knowledge

Knowledge based on scientific methods and empirical evidence, including theories, laws, and facts about the natural world.

AASB 138

The Australian Accounting Standards Board standard that specifies the accounting for intangible assets that are not dealt with specifically in another AASB standard.