Which of the following statements regarding accounting for the acquisition of property, plant and equipment is incorrect?
A) Asset acquisition costs that are not expensed immediately are referred to as capital expenditures.
B) Capital expenditures are expenditures that increase the company's investment in productive facilities.
C) When the construction of a building is complete, the cost of interest is recorded as interest expense.
D) When purchasing land, the cost for clearing, draining, filling and grading should be charged to a Land Improvements account.

Question

Quizplus · Accepted Answer

When land is purchased all necessary costs incurred to make the land ready for its intended use are recorded as an increase in the cost of the land. All other statements are correct.

Which of the Following Statements Regarding Accounting for the Acquisition