This quiz is a part of the CFA Level 1 reading 'Long-lived Assets'. 

Long-lived Assets

The interest is capitalized and added to asset cost in the balance sheet.

The interest is expensed and shown on the income statement.

In the cash flow statement, the interest is shown as an outflow under operating activities.

Expense costs till technical feasibility is established, and capitalize thereon.

Depreciation expense is shown in the income statement.

Over the life of an asset subject to depreciation, the accelerated method will result in more Depreciation Expense in total than the total Depreciation Expense using the straight-line method.

If a company continues to use equipment past the useful life that was assumed in determining the depreciation, then there will be no depreciation expense in the additional years.

The company will depreciate the entire cost over the useful life of the building.

Part of the purchase will be allocated to land and the remaining cost assigned to building is depreciated.

There will be no depreciation on these assets.