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    Question

    Which of the following best describes capital

    work-in-progress (CWIP)?
    A Capital expenditure under construction not yet ready for use, presented under non-current assets until ready for intended use Correct Answer Incorrect Answer
    B A revenue expense item to be expensed immediately Correct Answer Incorrect Answer
    C Inventory for sale Correct Answer Incorrect Answer
    D Short-term investment Correct Answer Incorrect Answer

    Solution

    CWIP represents costs incurred for fixed assets that are not yet completed and ready for their intended use. It is classified as a non-current asset.

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