Question

Average accumulated expenditures: Multiple Choice Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt. Is computed as a simple average if all construction expenditures are made at the end of the period. Are irrelevant if the company's total outstanding debt is less than total costs of construction. All of these answer choices are true statements.

Answer 1

Answer:

A. Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt.

Explanation:

Average accumulated expenditure can be regarded as the product of incurred expenditure on qualifying asset and par capitalization per unit for the period of that time in years. It should be noted that Average accumulated expenditures Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt.