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Free_Kalibri [48]
3 years ago
13

When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not need

ed 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.
Business
1 answer:
balu736 [363]3 years ago
8 0

Answer:

d. recognized as revenue of the period.

Explanation:

As per general accounting principles, when amount is borrowed for construction of capital asset then the interest is capitalized as the asset qualifies for capitalization being a long term assets.

Sometimes the funds remain idle and that the funds are invested in some other source for income, which might be in the form of interest.

This basically is an income for the company, no matter what was the exact purpose of such funds.

Even though interest expense is to be capitalized but interest income is a revenue income.

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Creating a different and unique product is called a
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Answer:

Product Differentiation

Explanation:

This is simply a strategy used by marketers to make their product different from that of their competitors.

Product Differentiation aims to make a product different so that potential buyers would identify the uniqueness of the product from other similar products.

4 0
3 years ago
Symon's Suppers Co. has announced that it will pay a dividend of $4.23 per share one year from today. Additionally, the company
sweet-ann [11.9K]

Answer:

$68.23

Explanation:

In this question, we apply the dividend growth rate model which is shown below:

The computation of the current share price is shown below:

= (Current year dividend) ÷ (Rate of return on company stock - growth rate)

= ($4.23) ÷ (10.6% - 4.4%)

= ($4.23) ÷ (6.2%)

= $68.23

We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate

6 0
3 years ago
An audience is first asked to write the last 2 digits of their social security number, and, second, to submit mock bids on items
Alchen [17]

Answer: Anchoring bias

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Some examples of anchors might include: real estate listing prices, initial cost estimates for development projects, salary of your last job etc.  

8 0
3 years ago
What is a union? An organization of obstetricians that collectively decides what the best practices for delivering babies should
finlep [7]

Answer:

An organization of workers that negotiates with employers, as a group, over wages and working conditions. ‌‎­‍­­‌‍​​‍​‍​‌​᠎​‌‌‍​​‌⁠​​‎‎‎‎‎‎‎‎

Explanation:

7 0
3 years ago
Difination of hard cash​
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Basically paper money and I believe coin's rather than other forms of payment.

5 0
3 years ago
Read 2 more answers
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