User Account

All Pages

What interest earned on temporary investments should be

Assignment Help Financial Accounting
Reference no: EM132988263

Problem 1: Government grants should not be recognized until there is a reasonable assurance that:

a) An entity will comply with the conditions attaching to them.

b) The grants will be received.

c) An entity will comply with the conditions attaching to them and the grants will be received.

d) An entity will comply with the conditions attaching to them or the grants will be received.

Problem 2: When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be

a) Offset against interest cost incurred during construction.

b) Used to reduce the cost of assets being constructed.

c) Multiplied by an appropriate interest rate to determine the amount of interest to be capitalized.

d) Recognized as revenue of the period.

Problem 3: Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?

a) Interest cost is being incurred.

b) Expenditures for the assets have been made.

c) The interest rate is equal to or greater than the company's cost of capital.

d) Activities that are necessary to get the asset ready for its intended use are in progress.

Reference no: EM132988263

Questions Cloud

Attract customers in a variety of jurisdictions : What do the circumstances and the holding in this case suggest to a business firm that actively attempts to attract customers in a variety of jurisdictions?
What fraction used to multiply an expenditure made on april : Construction of a qualifying asset, What the fraction used to multiply an expenditure made on April 1 to find weighted-average accumulated expenditures is
Describe the facebook competitive advantage : Describe the management function(s) used in the facebook's production and operations
Find three management standards : If you were unsure of how best, to apply the processes in ISO AS/NZS 9001:2016, what other standards might you consult to assist you? and also mention three man
What interest earned on temporary investments should be : Pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be
Building block of competitive advantage : Which of the following is NOT a widely accepted building block of competitive advantage?
Identify the nature and degree of main stakeholders : Identify the nature and degree of main stakeholders' interests, and implications of conflicting interests
How much interest should be capitalized : How much interest should be capitalized in 2021? To assist with construction, a P2,200,000 loan at 10% was obtained on Jan. 1, 2021
Reflect upon your career path : Reflect upon your career path. Where are you on your career journey? What have you learned from your past experiences?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd