1. As per AS 16, all the following are qualifying assets except
A) Manufacturing plants and Power generation facilities
B) Inventories that require substantial period of time
C) Assets those are ready for sale. ✓
D) None of the above
CA Intermediate Paper 1
AS 16 - Borrowing Costs MCQ
Chapter 14 • 4 Questions from ICAI Study Material
Questions
4
Est. Time
6 min
Source
ICAI Book
Question 1 of 4 0 correct | 0 wrong
Explanation:
Common Mistake:
Key Concept:
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Keyboard: 1-4 to select, ← → to navigate
Sample Questions: AS 16 - Borrowing Costs
Preview 3 of 4 questions from Chapter 14
2. Which of the following statement is correct:
A) Entire exchange gain is reduced from the cost of the Qualifying asset.
B) Entire exchange loss is added to the cost of a Qualifying asset.
C) No adjustment is done for the exchange loss while computing cost of Qualifying asset. ✓
D) None of the above
3. Capitalisation rate considers:
A) Borrowing costs on general borrowings only. ✓
B) Borrowing costs on general and specific borrowings both.
C) Borrowing costs on specific borrowings only
D) None of the above