Accounting Recognizes That Assets,such as Machinery and Buildings,lose Value Over

question 99

Multiple Choice

Accounting recognizes that assets,such as machinery and buildings,lose value over time.Accountants will record a portion of the cost of an asset as an expense each year through the use of:

• A)Asset valuation.
• B)Asset audits.
• C)Appreciation.
• D)Depreciation.

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Definitions:

Resource Demand

The desire and ability of businesses or individuals to acquire resources or inputs required to produce goods and services.

Resource Price

Resource price is the cost associated with acquiring the inputs needed for production, including labor, raw materials, and capital.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of demand for the final good or service.

Labor

The use of human physical and intellectual labor in the creation of products and services.