Sunday, February 16, 2014

In what situations is interest capitalized?

In what situations is interest capitalized?
it always have to be capitalized the situations are that intrest has to do with th bank if you want intrest go to your bank and ask for it

Usually when you can't pay it and the bank trusts that at some point you will be able to it, so they add it to the balance of the loan that you owe them. Capitalized means that you are moving from the income statement as an expense and making it a liabilty on the balance sheet.

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