When Companies Construct Their Own Long-Lived Assets, All Costs Required

question 109

Multiple Choice

When companies construct their own long-lived assets, all costs required to get the asset into operating condition must be:

• A)expensed immediately.
• B)included in the long-lived asset's cost.
• C)recognized as a maintenance cost.
• D)treated as a cost necessary to maintain the plant asset's current level of productivity.

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Definitions:

Electronegativity

A measure of the tendency of an atom to attract a bonding pair of electrons towards itself.

Noble Gases

A collection of elements that exhibit comparable properties in normal circumstances; these elements are scentless, transparent, constituted by single atoms, and display minimal chemical activity.

Polar Covalent

A type of chemical bond where two atoms share a pair of electrons unequally, leading to partial charges at each end of the bond.

S-H Bond

A chemical bond formed between a sulfur atom and a hydrogen atom, often found in organic compounds such as thiols.