Most Companies Can Justify the Use of Specialized Asset Management

question 82

Multiple Choice

Most companies can justify the use of specialized asset management software programs instead of the spreadsheets or traditional manual systems for all of the following reasons, except:

• A)The abundance of fixed asset data
• B)The time-consuming and tedious requirements for tracking changes
• C)The number of different methods of accounting for depreciation
• D)The intricacy of the tax laws

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Definitions:

Investing Activities

Transactions and activities related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Comparative Balance Sheets

Financial reports that compare the balance sheets of a company at two or more different points in time, to analyze trends or changes in financial position.

Cash Flows

The total amount of money being transferred in and out of a business, especially as affecting liquidity.

Equipment

Tangible, long-term assets used in the operation of a business, not intended for resale, such as machinery, office furniture, and computers.