At the Time of Capitalization of the Costs Incurred in the Construction

question 15

True/False

At the time of capitalization of the costs incurred in the construction of the asset,expenses pertaining to the new asset must go through the income statement.

---

Definitions:

Bank Reconciliation

The method of aligning the amounts in a company's bookkeeping records for a cash account with the matching data on a bank statement.

Deposit Made

A payment made in advance for goods or services that are to be received in the future, often recorded as an asset on the balance sheet.

Postdated Cheques

Cheques written with a future date and not valid until that date, often used to manage cash flows.