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Indicate Whether Each of the Following Expenditures Should Be Classified

Question 342

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Indicate whether each of the following expenditures should be classified as

Premises:
Parking lots
Electricity used by a machine
Excavation costs
Interest on building construction loan
Cost of trial runs for machinery
Drainage costs
Cost to install a machine
Fences
Unpaid (past) property taxes assumed
Cost of tearing down a building when land and a building on it are purchased
Responses:
land(L)
improvements (LI)
buildings (B)
equipment (E)
none of these (X)

Correct Answer:

Parking lots
Electricity used by a machine
Excavation costs
Interest on building construction loan
Cost of trial runs for machinery
Drainage costs
Cost to install a machine
Fences
Unpaid (past) property taxes assumed
Cost of tearing down a building when land and a building on it are purchased
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