To Be Charged to and Reported as Part of the Cost

question 25

True/False

To be charged to and reported as part of the cost of property,plant and equipment,an expenditure must be normal,reasonable,and necessary in preparing the asset for its intended use.

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Definitions:

Retained Earnings Statement

A financial statement that shows the amounts of a company's profits that are kept within the business rather than paid out as dividends.

Corporation Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific time period.

Common Stockholders' Equity

The portion of a company's equity owned by common shareholders, calculated as total assets minus total liabilities and preferred stocks.

Net Income

The ultimate earnings of a company, calculated by subtracting expenses and taxes from its gross revenue.