Under US GAAP, Interest on Loans Secured to Acquire Fixed Assets

question 6

Multiple Choice

Under U.S. GAAP, interest on loans secured to acquire fixed assets must be:

• A) expensed in the period they are incurred.
• B) capitalized as part of the fixed asset cost.
• C) either expensed currently or capitalized as part of the fixed asset cost.
• D) charged against revenue in the year the asset is put into service.

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Definitions:

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