Which One of the Following Statements Is True

question 55

Multiple Choice

Which one of the following statements is true?

• A) If a plant asset is self-constructed for less than it would cost to purchase, a profit should be recorded upon the completion of the construction.
• B) When property, plant, or equipment is acquired through donation, no entry is recorded.
• C) Development stage enterprises need not report losses before sales are made.
• D) Interest cannot be capitalized if a loan is taken when an asset is substantially complete and ready for its intended use.

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Definitions:

Cognitive Spotlight

The focusing of attention and cognitive resources on a specific area or aspect of the environment or thought.

Attention

Cognitive resources, mental effort, or concentration devoted to a cognitive process.

Visual Field

The entire area that can be seen when the eyes are focused on a single point, encompassing central and peripheral vision.

Distracted Driving

The act of driving a vehicle while engaging in other activities that divert the driver's attention away from the road.