Companies Borrow Large Amounts for Use in Construction Projects, Any

question 19

True/False

Companies borrow large amounts for use in construction projects, any idle funds are usually invested, GAAP allows the interest revenue earned from the excess to offset against the interest cost when determining the capitalization of interest.

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Definitions:

Joints

Natural fractures or separations in rocks without noticeable movement parallel to the surface of the fracture.

Uplifted

Raised or elevated geological formations, often due to tectonic movements.

Parallel

Lines or planes that are equally distant from each other at all points, never meeting or intersecting.

Physically Loosen

The process of breaking up compacted or consolidated materials, making them less dense and easier to move or erode.