Match the term with its definition. Additions Avoidable Interest Capitalization Period Commercial Substance Improvements Choose] [Choose ] Time Elapsed: Hide Time Attempt due: May 12 at 11:59pm 1 Minute. 22 Seconds The amount of interest on existing debt that would not have been incurred if the expenditures for the constructed asset had not occured. Correct Answer Used in the exchange of nonmonetary assets. Occurs when future cash flows change as a result of the transaction. Correct Answer A substitution for a better asset than the one currently being used. Correct Answer A transaction that maintains property.plant and equipment in operating condition. Required to be expensed as incurred. Correct Answer A transaction that will benefit several periods. Required to be handled as either an addition, improvement, or replacement Correct Answer The lenght of time whereby a company must add the cost of interest incurred to the asset being constructed. Correct Answer Used in determining the amount of interest that may be capitalized. Multiplied by a certain interest rate. Correct Answer Assets that are: acquired for use in business operations; long term in nature and depreciated; and possess physical substance Correct Answer The substitution of a similar asset for the one currently being used. Correct Answer An increase or extention of existing assets. Required to be capitalized and depreciated over their useful life. Correct Answer [Choose ] Major Repairs Choose Ordinary Repair Choose Property. Plant and Equipment Choose Replacements Choose Weighted-Average Accumulated Choose Expenditure 5:
Match the term with its definition. Additions Avoidable Interest Capitalization Period Commercial Substance Improvements Choose] [Choose ] Time Elapsed: Hide Time Attempt due: May 12 at 11:59pm 1 Minute. 22 Seconds The amount of interest on existing debt that would not have been incurred if the expenditures for the constructed asset had not occured. Correct Answer Used in the exchange of nonmonetary assets. Occurs when future cash flows change as a result of the transaction. Correct Answer A substitution for a better asset than the one currently being used. Correct Answer A transaction that maintains property.plant and equipment in operating condition. Required to be expensed as incurred. Correct Answer A transaction that will benefit several periods. Required to be handled as either an addition, improvement, or replacement Correct Answer The lenght of time whereby a company must add the cost of interest incurred to the asset being constructed. Correct Answer Used in determining the amount of interest that may be capitalized. Multiplied by a certain interest rate. Correct Answer Assets that are: acquired for use in business operations; long term in nature and depreciated; and possess physical substance Correct Answer The substitution of a similar asset for the one currently being used. Correct Answer An increase or extention of existing assets. Required to be capitalized and depreciated over their useful life. Correct Answer [Choose ] Major Repairs Choose Ordinary Repair Choose Property. Plant and Equipment Choose Replacements Choose Weighted-Average Accumulated Choose Expenditure 5:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Match the term with its definition.
Additions
Avoidable Interest
Capitalization Period
Commercial Substance
Improvements
Choose]
[Choose ]
Time Elapsed: Hide Time
Attempt due: May 12 at 11:59pm
1 Minute. 22 Seconds
The amount of interest on existing debt that would not have been incurred if the expenditures for the constructed asset had not occured. Correct Answer
Used in the exchange of nonmonetary assets. Occurs when future cash flows change as a result of the transaction. Correct Answer
A substitution for a better asset than the one currently being used. Correct Answer
A transaction that maintains property.plant and equipment in operating condition. Required to be expensed as incurred. Correct Answer
A transaction that will benefit several periods. Required to be handled as either an addition, improvement, or replacement Correct Answer
The lenght of time whereby a company must add the cost of interest incurred to the asset being constructed. Correct Answer
Used in determining the amount of interest that may be capitalized. Multiplied by a certain interest rate. Correct Answer
Assets that are: acquired for use in business operations; long term in nature and depreciated; and possess physical substance Correct Answer
The substitution of a similar asset for the one currently being used. Correct Answer
An increase or extention of existing assets. Required to be capitalized and depreciated over their useful life. Correct Answer
[Choose ]
Major Repairs
Choose
Ordinary Repair
Choose
Property. Plant and Equipment
Choose
Replacements
Choose
Weighted-Average Accumulated
Choose
Expenditure
5:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bd9fd3d-4f4d-4003-91c9-9c50e6822cb0%2Fea360a3b-3dbb-4755-9fda-a0e4d13685cb%2F2o8nhd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Match the term with its definition.
Additions
Avoidable Interest
Capitalization Period
Commercial Substance
Improvements
Choose]
[Choose ]
Time Elapsed: Hide Time
Attempt due: May 12 at 11:59pm
1 Minute. 22 Seconds
The amount of interest on existing debt that would not have been incurred if the expenditures for the constructed asset had not occured. Correct Answer
Used in the exchange of nonmonetary assets. Occurs when future cash flows change as a result of the transaction. Correct Answer
A substitution for a better asset than the one currently being used. Correct Answer
A transaction that maintains property.plant and equipment in operating condition. Required to be expensed as incurred. Correct Answer
A transaction that will benefit several periods. Required to be handled as either an addition, improvement, or replacement Correct Answer
The lenght of time whereby a company must add the cost of interest incurred to the asset being constructed. Correct Answer
Used in determining the amount of interest that may be capitalized. Multiplied by a certain interest rate. Correct Answer
Assets that are: acquired for use in business operations; long term in nature and depreciated; and possess physical substance Correct Answer
The substitution of a similar asset for the one currently being used. Correct Answer
An increase or extention of existing assets. Required to be capitalized and depreciated over their useful life. Correct Answer
[Choose ]
Major Repairs
Choose
Ordinary Repair
Choose
Property. Plant and Equipment
Choose
Replacements
Choose
Weighted-Average Accumulated
Choose
Expenditure
5:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education