ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 38

b. Interest incurred during the production of discrete projects such
as ships or real estate projects
c. Interest incurred on notes payable to vendors for routine
purchases made on a repetitive basis
d. All of these should be capitalized.
54. The use of a Discounts Lost account implies that the recorded
cost of a purchased inventory item is its
a. invoice price.
b. invoice price plus the purchase discount lost.
c. invoice price less the purchase discount taken.
d. invoice price less the purchase discount allowable whether taken
or not.
55. The use of a Purchase Discounts account implies that the
recorded cost of a purchased inventory item is its
a. invoice price.
b. invoice price plus any purchase discount lost.
c. invoice price less the purchase discount taken.
d. invoice price less the purchase discount allowable whether taken
or not.
Use the following information for questions 56 and 57.