Final answer:
Assets that do not qualify for interest capitalization include money, as it cannot be directly used to produce other goods, and tangible assets like collectibles, which are not used productively in a way that warrants interest capitalization.
Step-by-step explanation:
Examples of assets that do not qualify for interest capitalization include financial assets such as money, stocks, and bonds. These assets represent claims on future payments and cannot be directly used in the production of goods or services. Furthermore, tangible assets like collectibles—including paintings, fine wine, jewelry, antiques, and baseball cards—do not typically qualify for interest capitalization. While they may provide a return in the form of capital gains or personal enjoyment, they are not used in a productive capacity that would warrant capitalization of interest costs during their acquisition or improvement.
Additionally, money listed as an asset on a bank's balance sheet may not be physically present in the bank due to processes like fractional-reserve banking, where only a fraction of bank deposits are kept in reserve, with the rest being used for loans and other investments.