Multiple choice

The total cost of asset debited at the time of purchase does not include

  1. installation charges

  2. freight paid on bringing asset to the business

  3. interest on loan after the purchase of asset

  4. repair or alteration made at the time of purchase
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is the interest paid after the asset has been purchased and installed. Thus, it is a revenue expenditure and is not a part of the cost of asset.

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