Question

what is capital interest

Answer 1

Answer:

Capitalized interest is the cost of the funds used to finance the construction of a long-term asset that an entity constructs for itself. The capitalization of interest is required under the accrual basis of accounting, and results in an increase in the total amount of fixed assets appearing on the balance sheet.

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Answer 2

capital intereste refer to the intereste earn in business in based on the possible liquidation of the company