The Construction in Progress Account Is What Type of Account

question 74

Multiple Choice

The Construction in Progress account is what type of account?

• A) liability
• B) revenue
• C) asset
• D) expense

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Definitions:

Loan to Value Ratio

A financial term employed by lenders that denotes the ratio between a loan amount and the value of an asset acquired.

Down Payment

An initial payment made when something is bought on credit.

Compounded Quarterly

A method of calculating interest where it is added to the principal amount every three months.

Amortized

The process of paying off a debt through regular payments over a period of time, where each payment covers both interest and a portion of the principal amount.