Which of the Following Statements Regarding Borrowing Costs Is Correct

question 117

Multiple Choice

Which of the following statements regarding borrowing costs is correct?

• A)Neither ASPE nor IFRS usually require disclosure of these items.
• B)They are usually amortized until the majority of the underlying products have been sold.
• C)They are usually treated as period costs if they are incurred to bring inventories to a
• Condition ready for sale.
• D)If interest is capitalized, ASPE requires this policy and the amount capitalized to be
• Disclosed.

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Definitions:

Drive

An internal motivational state that compels organisms to act or behave in specific ways to satisfy needs.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.

Habit

A routine behavior that is repeated regularly and tends to occur subconsciously.

Incentive

Something that motivates or encourages someone to do something.