Which of the following expenditures is not capitalized as part of the cost of a capital asset acquired through a Capital Projects Fund?

Question

Quizplus · Accepted Answer

Interest expenditures on financing the construction project are not capitalized as part of the cost of a capital asset acquired through a Capital Projects Fund. While the interest paid during the construction period is added to the cost of the asset, the interest paid on the long-term financing of the project is not. Instead, it is recorded as an expenditure in the fund's statement of revenues, expenditures, and changes in fund balances. A, B, and D are all costs that can be capitalized as part of the cost of a capital asset acquired through a Capital Projects Fund.

Which of the Following Expenditures Is Not Capitalized as Part