In Dealing with Capitalized Costs, You Might Find Deferred Charges

Multiple Choice

In dealing with capitalized costs, you might find deferred charges of interest on the balance sheet. What should you do?

A) Assume they are accurately capitalized
B) Suspect a fraud may have occurred but try to prove innocence
C) Look for ways the company could have accidentally deferred the charges
D) Deferred interest charges are perfectly normal on the balance sheet