CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Expenditures capitalized as noncurrent assets generally include those expenditures that are ______.

A. made for normal repairs to maintain the usefulness of the asset over a number of years
B. for items that have a physical life of more than a year, regardless of their cost
C. material and that have an economic benefit to the entity only in the current year
D. material and that have an economic benefit to the entity that extends beyond the current year
E. immaterial
Correct Answer: D

User Contributed Comments 5

User Comment
aestus 'Usefuless of an asset' is not the same as the 'physical life of an asset'. Hence D and not B.
Khadria "D" includes "B"
Jolen thanks aestus...nice distinction.
jasonkwk what does capitalize means?
To-be-CFA @Jasonkwk: Capitalize means stating the cost on the Asset side of the Balance Sheet.
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