The Cost of Land Would Include All of the Following

question 116

Multiple Choice

The cost of land would include all of the following except:

• A) survey and legal fees incurred
• B) costs of removing any unwanted building on the land
• C) paving and fencing
• D) costs to grade and clear the land

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

Owner's equity represents the owner's claims on the assets of the business, calculated as total assets minus total liabilities.

Creditors' Risk

The level of risk that creditors face regarding the possibility of not receiving back the principal and/or interest on loans issued to borrowers.

CPA

Certified Public Accountant, a designation given to someone who has passed the Uniform CPA Examination and met additional state education and experience requirements in accounting.