Under the Cost Principle,a Company Capitalizes

question 167

Multiple Choice

Under the cost principle,a company capitalizes:

• A)all ordinary repair expenditures incurred in the use of an asset.
• B)any interest incurred in borrowing money to help pay for asset acquisitions.
• C)all reasonable and necessary costs of acquiring an asset and preparing it for use.
• D)the total market value of individual assets acquired in a 'basket purchase.'

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Definitions:

Negatively Worded

relates to items or questions in surveys or assessments that are phrased in a manner where agreement indicates a lack or decline of the trait or behavior of interest.

Simplistic

An overly simple view or explanation of something that does not account for all the complexities involved.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others.

Misrepresent

To give a false or misleading representation of facts or information.