BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The asset is assigned to NO depreciation area.
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The ordinary depreciation start date is empty.
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The asset capitalization date is empty
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The asset belongs to a specific asset class
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Detailed explanation-1: -Assets under construction are a special form of tangible assets. They are usually displayed as a separate balance sheet item and therefore need a separate account determination in their asset classes.
Detailed explanation-2: -(18) An Asset Under Construction (AUC) is an asset the University is currently ‘constructing’, which is not yet being used for its final intended purpose.
Detailed explanation-3: -It is a debit balance and is treated as an asset in the future and thereby will be recorded on the assets side of the balance sheet under the head of non-current (long term) assets till the construction is not completed.
Detailed explanation-4: -The best way to identify assets is to interview asset owners. The ‘asset owner’ is the individual or entity responsible for controlling the production, development, maintenance, use and security of an information asset.