The Period of Time for Which Interest Is to Be

question 7

Multiple Choice

The period of time for which interest is to be capitalized ends when ________.

• A) no additional interest cost is actually being incurred on direct financing for the acquisition of the asset
• B) a constructed asset is substantially complete and put into use
• C) a constructed asset is substantially complete and ready for its intended use
• D) an acquired asset is received and ready for its intended use

---

Definitions:

Monocot

A group of flowering plants (angiosperms) that are characterized by having one cotyledon (seed leaf), parallel leaf veins, and floral parts typically in multiples of three.

Eudicot

Eudicotyledones; flowering plant group; members have two embryonic leaves (cotyledons), net-veined leaves, vascular bundles in a ring, flower parts in fours or fives and their multiples, and other characteristics.

Flowering Plant

Flowering plants, or angiosperms, are plants that produce flowers as their reproductive structures, containing the organs for seed production.

Showy Flowers

Flowers with bright colors and large petals designed to attract pollinators such as birds and insects.