When a Firm Constructs Its Own Buildings or Equipment

question 37

Multiple Choice

When a firm constructs its own buildings or equipment:

• A) it recognizes the labor, material, and overhead costs incurred as an asset.
• B)U.S.GAAP and IFRS require firms to include, or capitalize, interest costs during construction in the cost of a self-constructed asset.
• C) it recognizes the labor, material, and overhead costs incurred as a period expense.
• D)U.S.GAAP and IFRS require firms to expense interest costs incurred during construction of a self-constructed asset.
• E)both choices a and b are correct.

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Definitions:

Anticipatory Socialization

The process of learning and adopting the norms, values, and behaviors of a status or role one anticipates occupying in the future.

Journalism School

An educational institution or a part of an institution that focuses on teaching the principles, ethics, and skills required for the profession of journalism.

Resocialization

The process where individuals undergo radical changes in their beliefs, values, and behaviors, often in new social environments.

Powerful Socializing Agents

Institutions or individuals that have a significant impact on shaping an individual's beliefs, values, and behaviors, including family, schools, media, and religion.