Classify Each of the Following Costs Associated with Long-Lived Assets

question 28

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Outdoor lighting at new business location

• A)Land improvements
• B)Buildings
• C)Land
• D)Machinery and equipment

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Definitions:

Interest Revenue

Earnings received from investments in interest-bearing assets like loans, bonds, and savings accounts.

Notes Receivable

Notes receivable are written promises for payments to be received, including principal and possibly interest, recognized as assets on a company's balance sheet.

Promissory Note

A financial instrument that contains a written promise to pay a specified sum of money to another party at a determined future date or on demand.

Interest Revenue

Income earned from investments, such as savings accounts, bonds, or loans, calculated as a percentage of the principal sum.