Which of the Following Statements Is False Concerning Interest Capitalization

question 11

Multiple Choice

Which of the following statements is false concerning interest capitalization?

• A) Generally accepted accounting principles require the capitalization of interest for assets constructed for an Enterprise Fund in most situations.
• B) Interest cost should not be capitalized for asset acquisitions financed by restricted gifts or grants.
• C) Interest capitalization is computed differently for tax-exempt versus taxable debt.
• D) Interest capitalization is not allowed in Enterprise Funds.

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