Which of the following statements about the capitalization of interest costs is least accurate()
A. The argument for interest capitalization is that the cost of the self-constructed asset should be identical to the cost of the asset purchased alter completion.
B. Interest capitalization will distort the classification of cash flows. The capitalized interest will be reported as cash outflow from operations rather than cash outflow from investing.
C. If a firm capitalizes interest, its interest coverage ratio (EBIT/I) will be misrepresented. The analyst should adjust the interest coverage ratio downward to make it comparable with firms that do not self-construct assets.