Which of the Following Assets Do Not Qualify for Capitalization

question 9

Multiple Choice

Which of the following assets do not qualify for capitalization of interest costs incurred during construction of the assets?

• A) Assets under construction for a company's own use.
• B) Assets intended for sale or lease that are produced as discrete projects.
• C) Assets financed through the issuance of long-term debt.
• D) Assets not currently undergoing the activities necessary to prepare them for their intended use.

---

Definitions:

Subjective Probability

An individual's personal and subjective assessment of the likelihood of an event occurring, based on their own knowledge and judgment rather than on statistical analysis.

Personal Judgment

Personal Judgment involves making decisions or forming opinions based on individual assessment and intuition, rather than solely on data.

Theoretical Arguments

Reasoning based on hypothetical constructs and principles, often used to explain or predict phenomena beyond empirical observations.

Experimental Data

Data obtained through deliberate manipulation and observation of variables in controlled conditions to study the effects of interventions or treatments.