All of the Following Payments Were Made by UIB Co

question 54

Multiple Choice

All of the following payments were made by UIB Co.for machinery the company bought and used during the year.Which of these expenditures should NOT be capitalized?

• A)a payment made to install the machinery at the factory
• B)the cost of electricity to operate the machine for the first year of use
• C)the cost of insurance while the machine was in transit from the seller's warehouse
• D)the costs of testing the machine in preparation for use

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Definitions:

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

Pitch

Refers to the perceived frequency of a sound, determining how "high" or "low" it sounds.

Middle Ear

The air-filled space behind the eardrum that contains the tiny auditory bones responsible for transmitting sound from the outer ear to the inner ear.

Hammer

A tool consisting of a weighted "head" fixed to a long handle, used for driving nails into, or breaking apart, materials.