Question

Office building under construction will be shown under ________.

Options

• Capital work in progress

• Loans and Advances

• Fixed Intangible Assets

• Current Assets

Answer 1

Office building under construction will be shown under capital work in progress.

Explanation:

Fixed assets, i.e. capital work in progress, include an office building under construction (WIP). This account is listed separately below the fixed asset on the balance sheet. All expenses incurred on the asset until it is turned into a working condition are recorded in the capital work in progress (WIP) account (i.e.finished). All of these costs will be factored into the asset's price.