Interest is capitalized when incurred in connection with the construction of plant assets because_______.

Answers

Answer 1

Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue

What is Interest?

This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.

Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.

Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.

Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.

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Related Questions

The money supply term that refers to money that can be accessed quickly and easily is?

Answers

M-1 is the money supply term that refers to money that can be accessed quickly and easily.

What is M-1 in money supply?

This refer to the most liquid money that comprised of the currency, traveler’s check, and checking account deposits.

The M1 money supply composed of currency, demand deposits and other liquid deposits such as savings deposits

The formula for getting the M1 is Currency + traveler check + checking account deposits.

Therefore, the M-1 is the money supply term that refers to money that can be accessed quickly and easily.

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The interest rate on secondary credit is set ________ basis points ________ the primary credit rate.

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The interest rate on secondary credit is set 50 basis points above the primary credit rate.

What is the primary credit rate?

The "Primary Credit" program serves as the main check valve to make sure that the banking sector has enough liquidity.

What is the secondary credit rate?

Depository institutions can apply for secondary credit if they are not qualified for primary credit. It is extended at a rate that is greater than the prime credit rate on a very short-term basis, usually overnight.

What is the interest rate the Fed charges banks?

The Federal Reserve's benchmark interest rate currently sits in the 0.25 to 0.5 percent target range, but as authorities work to curb inflation, they expect it to rise even further in 2022. The fed funds rate would reach its highest level since 2008 if the Fed raises rates by an additional 2.5 percentage points, as predicted by investors.

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Discuss the business tactic described in the text that the bissell brothers used to become business owners.

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The business tactic described in the text that the Bissell brothers used to become business owners is, they are the bosses, which means that they make their own decisions.

Bissell Brothers was founded in 2013 by two brothers, Peter and Noah Bissell which is based in Portland. These two Bissell brothers started their own small business, and they ran their own company, took their own decisions, and did not depend on partners, higher authorities or investors for any ideas.

Hence, they are the bosses of their business. Only when their business grows big, they have managers to help them in their business.

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Assume that initially there is free trade. if the united states then imposes a $25 tariff per barrel of imported oil, the tariff revenue generated will equal?

Answers

Tarrif revenue generated is equal to the increase in the imports enlarging the tax base using import demand elasticilty.

A tarrif is a as tax on imported goods with reference to domestic products.

The production that has been imported ,government may choose to restrict  competititon by applying tarrif which helps to create an equilibrium price.

Imposing of tarrif worth $25 on imports would help to reduce domestic producer's pressure upon industry generating an income .

Consumers will face higher price whereas the producers would be able to sell more in the trade creating a balance.

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Imagine we are throwing a loaded die (6 sides). The probability that the die shows a 6 is twice as high as the probability of each of the other numbers. On average, out of these 70 throws how many times would the die show the number 6

Answers

Probability

It is a branch of mathematics that deals with the occurance of a random event. The value is expressed from 0 to 1. It predicts how likely events are to be happened .

Step by step solution:

Die has six sides so probability of each is [tex]\frac{1}{6}[/tex] but,

The probability that the die shows a 6 is twice as high as the probability of each of the other numbers.

so,

the probability of 6 is [tex]\frac{2}{7}[/tex] and others probability is [tex]\frac{1}{7}[/tex]

we throw die 70 times

so probability 6 out of 70 throws is

70×[tex]\frac{2}{7}[/tex]

=20              

out of these 70 throws , the probability of die showing number six is 20 times.

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How does the use of new technology in industry benefit producers more so than consumers?

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The use of new technology in industry has benefited producers more so than consumers as, "Producers can transport goods around the world."

With faster decision-making and quick responses, the new technology enables producers to become more competitive in the market. The technology is helping to increase the efficiency of systems, products and services.

With the help of technology, the products which are produced are being marketed and then they are being transported around the world. This way it enables the business to grow rapidly and increases the profits.

Through the use of technology, businesses can research the market. This is extremely useful as it provides businesses with in-depth knowledge about market conditions.

Hence, the use of new technology in industry has benefited producers more so than consumers.

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A manager asks a chef to continue cooking chicken breasts after seeing them cooked to an incorrect temperature. This is an example of which step in active managerial control?

Answers

The action where the manager asks the chef to cook the chicken breasts again is what is called corrective action.

What is corrective action?

This is an  action that has to be carried out as a way of taking care of something that has not being done in the way that it should have been done. It is the way of getting people to take care of their mistakes.

The manager wants the chef to take care of her mistakes this was the reason why he has asked her to re cook the because the temperature was not right.

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The calculation for ________ considers a customer’s product or service usage rate, their loyalty to the company, and the firm’s cost to serve that customer over time.

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The calculation for customer lifetime value considers a customer’s product or service usage rate, their loyalty to the company, and the firm’s cost to serve that customer over time.

Customer lifetime value (CLV), commonly referred to as lifetime value (LTV), is the profit margin which is expected by the  company  to earn over the lifetime of their business relationship with the average customer.

In order to calculate customer lifetime value, first of all calculate the lifetime value by multiplying the average value of the sales, the average number of transactions, and the average customer retention period followed by the company.

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In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA adapted)

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In a process costing system, the application of factory overhead usually would be recorded as an increase in (CPA adapted) Finished goods inventory control.

What is process costing system?

A process costing system serves as a method that manufacturing industry usually used in determining the total production cost for each unit of product.

Hence, In a process costing system, the application of factory overhead usually would be recorded as an increase in (CPA adapted) Finished goods inventory control.

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A financial model that measures the current value of all cash inflows and outflows of a project using management's minimum desired rate of return is known as the _________ model.

Answers

When a company uses a financial model that looks at the current value of cash inflows and outflows using a desired rate of return, this is the Net Present Value.

What is the Net Present Value?

This is a method of checking the profitability of a project by checking just how much a project brings in over its costs.

The cash inflows and outflows are therefore compared at their present value which involves discounting at a minimum desired rate of return.

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Historically, there was ________ a central bank in the u.s.

Answers

Answer: Resistance to

Explanation:

Given that many new businesses fail in the first few years after they are established, how should an entrepreneur think about the risk of failure associated with a new business? From what you have learned in this chapter, what can an entrepreneur do to increase the chance of success?

Answers

Businesses Fail by Entrepreneur - You start your business for the wrong reasons
There’s No Market or Too Small of a Market
Poor Management
Insufficient Capital
The Wrong Location
Lack of Planning
An entrepreneur can do these things to increase the chance of success Study the competition
Conserve cash no matter how good business is
Research new products and services
Don't tackle huge markets at first
Listen to customer feedback and adapt
Make proper strategy
Target the Customers Your Competitors Leave Behind
Invest in Learning New Skills
Stay Positive
Create a Budget and Stick to It
Focus on Sustainable Growth
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Demand for movie rentals is highly elastic. A video store that raises the price of a rental will Group of answer choices lose revenue. possibly gain or lose revenue. gain revenue. see no change in revenue.

Answers

It will lose revenue

What is the relation between elastic demand and price change?

An elastic demand responds proportionately to changes in price and is present in products or services that have substitutes.

It implies that if a good's price goes up, less people will want it. The opposite is also true; if the price drops, the demand will increase.

On the other side, elasticity describes the effect of prices on consumer demand for goods, and there are a number of important elements that affect this relationship:

Need for the good (or product)The availability of alternatives or substitutes for those commoditiesTime

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Need help ASAP! Tyyyyyy

Answers

This is a question on Entrepreneurship. The two sectors where Mama Meals plays are:

Logistics and ;Foods/Refreshment Sectors.

What are the two reasons why Naisiadet might be described as an entrepreneur?

The first is she knows how to identify Opportunities; The second is, she knows how to convert opportunities in to money making operations. See The first sentence of the first paragraph; and the first sentence of the third paragraph.

Explain Two benefits to Naisiadet of Researching the market for the proposed business

The first benefits is that it helped her to discover the size of her market - 5% of the people in Nairobi.The second is that they were middle income earners.
Was it a mistake for her not to have had a business plan?

Yes. Business plans are essential for laying out the long-term goals of a business.

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A vacant lot that measures 100 feet wide by 125 feet deep is listed at a price of $250 per front foot. The broker will collect an 8% commission on the sale. If the lot sells for the full asking price, how much is the broker's fee

Answers

The broker's fee if the full asking price of $250 per front foot is received will be $2,000.

What is the broker's fee?

A broker's fee is an amount that the broker charges as a fee for facilitating the sale of a property.

First find the asking price:

= 250 x 100 feet

= $25,000

The broker's fee is:

= 8% x 25,000

= $2,000

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When the price of pistachio nuts is $7.50 per lb. the quantity demanded is 48 lbs. When the price of pistachios is $9.00 per lb. the quantity demanded is 40 lbs. When the midpoint formula is used to measure the price elasticity of demand we can say that the demand for pistachio nuts is

Answers

Unit-elastic
The amount required is 48 pounds while the price of pistachio nuts is $7.50 per lb. The amount needed is 40 pounds when pistachios cost $9.00 per lb. We can state that the demand for pistachio nuts is Unit elastic when the midpoint formula is applied to calculate the price elasticity of demand.

Unit Elastic - The economic theory known as unit elastic demand holds that when a product's price changes, the quantity desired also changes in an equal and proportional manner. In other words, the percentage change in price and the percentage change in demand for the product are equal. Consider the elastic demand on a basis of units per unit.
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Education for girls is a good investment in low-income countries because __________________.

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Education for girls is a good investment in low-income countries because better educated women are more likely to have healthier and better-educated children and this will promote economic growth.

Investing in girls education is a good investment in low-income countries because it will provide a boost to a country's economic growth and progress, and will act as a catalyst for gender equality on multiple levels.

Provided with an education, girls are more likely to earn a higher income later in life, increasing their family's overall quality of life.

Hence, girls education also increases the income of girls and leads to growth in GDP.

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As the balance in the accumulated depreciation increases, total assets because accumulated depreciation is a(n) __________ account.

Answers

As the balance in the accumulated depreciation increases, total assets because accumulated depreciation is a cumulative account.

Accumulated depreciation is that total amount upto which an asset has been depreciated up until a single point.

In each period, the depreciation expense is recorded in  period in which it is added to the accumulated depreciation balance at the beginning. An asset's carrying value on the balance sheet is obtained by deducting  historical cost from accumulated depreciation. At the end of an asset's useful life, carrying value of the asset on the balance sheet will match salvage value of asset.

Accumulated depreciation is shown on the balance sheet below the line of related capitalized assets. The accumulated depreciation balance keeps on increasing over time by  adding the amount of depreciation expense recorded in  each current period.

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Lin is an artist and is seeking financial backing for a series of culturally relevant murals in chicago. what would be his logical choice of a crowdfunding source model?

Answers

Lin is an artist and is seeking financial backing for a series of culturally relevant murals in Chicago. What would be his logical choice of a crowdfunding source model is Option A. a patronage model

What is a patronage model?

Patronage is the aid, assistance, support, privilege, or financial aid that an organization or individual bestows on another. In the history of art, arts patronage refers to the support that kings, popes, and the wealthy have provided to artists such as musicians, painters, and sculptors.

Therefore, the correct answer is option A. a patronage model

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The complete question goes thus:

Lin is an artist and is seeking financial backing for a series of culturally relevant murals in chicago. what would be his logical choice of a crowdfunding source model?

A. a patronage model

B. a lending model

C. an investor model

D. a rewarding model

Which term refers to the close in which the salesperson discounts the offer or improves the terms when the buyer rejects the first attempt to close?

Answers

Closing is generally defined in sales as the point at which a prospect or customer decides to make a purchase. Very few prospects will close themselves, requiring the salesperson's assistance. This can be unsettling, especially for new salespeople, because it exposes the salesperson to the prospect's rejection.

While closing the sale is required, it does not have to be a major undertaking. A salesperson who has done well in the early stages of the sales process will only need to nudge the prospect to begin the close. For instance, salesperson XYZ learns that customer ABC is interested in his product. In that situation, he doesn't need to promote or persuade. 

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You make $10.25 per hour. You have 7.5% of your total pay taken out of your check for your 401K retirement plan. How much will be taken out for your 401K if you work 47 hours this week

Answers

The amount that will be taken off the pay check for the 401k retirements plan given all the criteria indicated above is $38.82 (Option D)

What is the computation justifying the above?

Given:

Pay Per Hour: $10.25

Bonus: $15.375‬ for every hour worked over forty hours.

Total Hour worked: 47 Hours

Percentage deductible: 7.5%

Total Pay thus =

(40 *10.25) + (7 *15.375)

= $517.625

Total 401 K deduction thus, =

7.5% * 517.625

401K Deduction total = $38.82

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Full Question:

You make $10.25 per hour. You have 71/2% of your total pay taken out of your check for your 401K retirement plan. How much will be taken out for your 401K if you work 47 hours this week? You get paid time-and-a-half for all hours over 40.

Select one:

A. $36.13

B. $69.02

C. $54.20

D. $38.82

E. $14.35

Which audience analysis anticipates resistance if something is going to cost money?

Answers

The audience analysis that anticipates resistance if something is going to cost money is a situational analysis. This is further explained below.

What is situational analysis?

Generally, An organizational situation may be better understood by doing a situational analysis, which is a set of techniques for evaluating both the internal and external variables of a company.

In conclusion, A situational analysis is the kind of audience analysis that determines whether or not there will be opposition to anything if it will cost money.

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A tax that imposes a small excess burden relative to the tax revenue that it raises is.

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A tax that imposes a small excess burden relative to the tax revenue that it raises is an efficient tax.

What Exactly Is Tax Efficiency?

The least amount of taxes that are legally required to be paid by a person or a corporation is known as tax efficiency. When a financial choice results in a lower tax bill than a competing financial structure that serves the same purpose, the choice is said to be more tax-efficient.

Tax-Advantaged Mutual Fund

Another approach to lower tax obligations is to invest in a tax-efficient mutual fund, particularly for taxpayers without access to a tax-deferred or tax-free account. In comparison to other mutual funds, a tax-efficient mutual fund is taxed at a reduced rate. Compared to the standard mutual fund, these funds often produce lower rates of returns through dividends or capital gains.

Mutual funds that provide little to no interest income or dividends include small-cap stock funds and passively managed ones, including exchange-traded funds (ETFs) and index funds.

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A smart card is an electronic funds transfer tool that can serve as a(n) ______. (Select all that apply)

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A smart card is an electronic funds transfer tool that can serve as :-

credit carddrivers licensedebit card

A smart card is a physical card with a chip that acts as a security token. Smart cards are usually the same size as a driver's license or credit card and can be made of metal or plastic.

Wire Transfer (EFT) is a wire transfer over an online network. Wire transfers can be made between the same bank or different banks and can be made using several different types of payment systems.

Online payments via credit, debit, or smart cards are examples of monetary transactions. Another popular example is e-cash.

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Student financial aid can be awarded in
the form of:
Grants.
Work-study.
Loans.
Scholarships.

Answers

It should be noted that Student financial aid can be awarded in

the form of:

Grants.Work-study.Scholarships.

What are Student financial aids ?

Student financial aids serves as the financial assistance that is been offered to students by government to support their academic goals so as to be able to help them to achieve their goals.

It should be noted that Student financial aid can be awarded in

the form of Grants as well as Work-study which will allow the student to make a little money to support his academics bills.

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Does the way to amortize the loan seem correct? what alternatives could be considered?

Answers

A few amortizing loans will permit early compensation, thereby erasing any additional hobby you'd in any other case have to pay. With an easy hobby loan, you're much more likely to incur a prepayment penalty, as you are paying an equal amount to hobby on every scheduled fee and the lender is relying on that money.

An amortized loan is a form of mortgage that requires the borrower to make scheduled, periodic bills which might be implemented to both the major and hobby. An amortized loan price first can pay off the hobby expense for the duration; any final amount is positioned toward decreasing the most important quantity.

In its middle, mortgage amortization facilitates your price range for massive debts like mortgages or vehicle loans. it's also a beneficial device to demonstrate how borrowing works. by way of know-how of your fee system up the front, you can see that on occasion decreasing month-to-month installments can bring about larger interest bills over the years, for an instance.

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A company employing a _______ strategy would create a new product targeted to its current customers.

Answers

A company employing a product development strategy would create a new product targeted to its current customers.

What is New Product Development ?

You can get the people in your division to come up with ideas for new products by following the given things mainly which revolves around reinforcing the novel ideas:

As employees have direct contact with the customers so they have the better ideas about the customers needs and wants.Employees are well aware of the changing trends so they should be encourage to come up with the new and novel ideas for the new products.Ideas can come from any where, from any level of the organization so each and every single employee should be motivated to participate in idea generation activities.

The importance of doing customer research is to have a drive for new product development. A research can be effective in pointing out consumer trends and fads, as well as opening a direct customer communication channel that feels prestigious for having its requests valued by a company. Through concrete data of potential customers and new customers, an organization has the ability to meet the actual demand of potential customers and make possible adjustments to the production process.

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When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n):______

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When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n): expert forecasting survey.

A survey is a survey method that collects data from a predefined group of respondents to provide information and insights on a variety of topics of interest. They have multiple purposes, and researchers can implement them in different ways, depending on the methodology chosen and the purpose of the study.

Surveys are used to collect or generate insights in areas such as social surveys and demographics. Research studies are often used to assess thoughts, opinions, and emotions. The survey can be specific and limited, or it can set more global and broader goals. types of surveys and their usage. Most studies fall into three different categories: exploratory, descriptive, and causal. In the world of online research, mastering all three will give you more informed insights and higher quality information.

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What types of issues should be agreed upon at the first level supervisor level and which ones do you think need to be elevated?

Answers

The issues of training, absenteeism , productivity and morale should be agreed upon at the first level of supervisors.

The first line supervisor can manage concerns like as training, absenteeism, productivity, and morale . With the growth of unions, hiring and firing have grown increasingly difficult for first-line supervisors to handle. Hiring and, more crucially, dismissal should be prioritized to avoid disputes. Disciplinary action is often handled by first line supervision in a non-union context. It should be elevated in a union setting. Elevation would guarantee that all of the ducks are in a row to avoid a complaint and save the company money on any monetary settlements.

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International trade is fundamentally a?

Answers

International trade is fundamentally a win win situation.

What is international trade?

International trade is the process by which goods and services are traded between countries. People and countries have access to goods and services that are either unavailable or more expensive domestically because to global trade.

The exchange of money, goods, and services across international boundaries or regions is a result of a need or desire for certain commodities or services. The bulk of countries' gross domestic products benefit greatly from this trade.

The most common types of trade restrictions are tariffs, quotas, and nontariff barriers. In international trade, a tariff is an import tax imposed by the federal government that raises the price of the good for the customer. Often referred to as fees or import duties, tariffs usually begin by placing restrictions on certain goods.

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50.Susan has been diagnosed with depression. She is presented with this long list of words: happy, sad, gloomy, sunny, bright, tearful, joyful, sorrow, radiant, dismal, buoyant, melancholy, heartbroken, and glee. According to research findings on depression and memory, which word is Susan LEAST likely to recall After undergoing a gastrectomy, a client develops pernicious anemia. Which route should the nurse use to administer cyanocobalamin (vitamin B12) Click on the boxes to correctly identify how the forms of the word sense are used. adjective,noun, adverb,verb?Marty sensed that his baseball team was in trouble."Whoa, that sensation wasn't entirely pleasant."The sensible thing to do now is study. Which of the following equations represents F(x)= x4 reflected across the liney = x?OA. F(x)=xOB. F(x)=xOC. F(x)=-4xOD. F(x) = ** Richard is able to read 40 pages in 100 minutes the reading speed of James is ____ pages per minute who are the actors in the meningitis b vaccine commercials using a calculator, or otherwise,determine the value of(12.3) - (0.2463) and write the answer(i)exactly (ii)correct to two significant figures Given z =-1 i, which letter represents z^3? "hippies" were often seen carrying a flower or wearing them in their hair. which response best describes what flowers symbolize for those who identified as a hippie? for pet food: how would adopting a process costing system benefit the managers responsible for the production of this product? list two specific decisions you think a process costing system could help these managers make. identify and describe two or three processes involved in making this product. for each, describe the direct materials used and at least one conversion cost associated with the process. explain how managers would be able to estimate the cost of the units being processed at a given point in time. x-15/3 = 18x. How to solve this question? I will mark the first answerer as brainliest. Mamadou drove 168 miles in 8 hours. If he continued at the same rate, how longwould it take to travel 126 miles? Which of these shapes are congruent Select the correct answer. What are the solutions to this equation? 16x2 + 9 = 25 Write 3 to 4 sentences describing how the huntsmans motivations advance the plot in "Little Red Riding Hood. Agents J and K work in a long hallway with 4000 equally-spaced, consecutive offices. The agents decide to walk toward each other so they can meet and have lunch together. Agent J has recently been relocated from office 2013 to office 1. His former office neighbor, Agent K, is still in office 2014. Assuming that Agent J can walk at a rate of 25 offices per minute, and Agent K walks at 36 offices per minute, what office will they meet at if they leave at the same time An equilateral triangle has a median drawn from one angle to the opposite side. What is the measure of each angle formed by the place where the median meets the vertex?(Step by step pls) Worth 20 points Action movies often present what George Gerbner calls "happy violence." Which of the following is a good example of "happy violence" as Gerbner uses the term? quizlet Evaluate 3x for x = -2, x = 1, and x = 3.A) 1/9, 3,27B) /3, 0, 9C) 9,3, 27D) 1/9, 9, 27 Paying attention to which of the following components could prevent situations that can cause accidents