Which One of the Following Items Would Be Charged to the Cost

question 94

Multiple Choice

Which one of the following items would be charged to the cost of a building rather than the cost of the land?

• A)Architectural fees.
• B)Grading of land.
• C)Demolition of a existing structure.
• D)Cost of hauling material from a demolished structure.

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Definitions:

Accounting Identity

A fundamental equation that must always hold true, often without regard to time or specific instances, in accounting and economics.

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.

Closed Economy

An economic system that does not interact with other economies in terms of international trade or financial transactions.

Public Saving

The difference between tax revenues and government expenditures, typically representing the amount of surplus funds the government has.