Which of the Following Should Be Included in the Cost

question 103

Multiple Choice

Which of the following should be included in the cost of equipment?

• A) Freight costs to deliver the equipment
• B) Installation costs for the equipment
• C) Testing costs to get the equipment ready for use
• D) All of the above

---

Definitions:

Common Equity

The amount of ownership in a corporation that is held by common shareholders, represented by the value of common stock plus retained earnings.

Year-end Balance Sheets

Financial statements detailing a company's assets, liabilities, and equity at the end of a fiscal year.

Retained Earnings

Profits that a company retains rather than distributes to its shareholders as dividends, often used for reinvestment.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.