Enterprise funds may capitalize interest paid on debt incurred for construction of plant assets.

Name: Enterprise funds may capitalize interest paid on debt incurred for construction of plant assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Enterprise funds, which are used to account for activities that provide goods or services primarily to the government or other departments, may capitalize interest paid on debt incurred for construction of plant assets. This is in accordance with Generally Accepted Accounting Principles (GAAP).

Enterprise Funds May Capitalize Interest Paid on Debt Incurred for Construction