Question

Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset.

a)True b) False ?

Answer 1

Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset. This statement is true.

Step-by-step explanation:

Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset.

This means that if a company didn't invest in a particular asset, it wouldn't have to pay the associated interest cost. So, the statement 'Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset' is true.