Day: March 9, 2024

Which of the following is excluded from the cost of a tangible non-current asset?

Select ONE answer:

1. Site preparation costs
2. Legal fees
3. Costs of a design error
4. Installation costs

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Any abnormal costs are not directly attributable to the asset and therefore should not be capitalised.
4. Not correct

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