Stephen Bought a New Chevrolet Suburban Vehicle by Putting $10,000

question 27

Multiple Choice

Stephen bought a new Chevrolet Suburban vehicle by putting $10,000 down and arranging to make monthly payments of $599 for six years.These payments represent the ________ of the vehicle for Stephen.

• A)acquisition costs
• B)repair costs
• C)maintenance costs
• D)ownership costs
• E)disposal costs

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Definitions:

Cash

Liquid currency and resources such as bank deposits that a business has immediate access to for transactions and operations.

Prepaid Insurance

Prepaid insurance is the portion of insurance premiums that has been paid in advance for coverage over future periods, and is classified as a current asset on the balance sheet.

Unearned Revenue

Money received by a business for services or products yet to be delivered or provided; considered a liability until the service or product is delivered.

Utilities Expense

The cost incurred by a business for the consumption of utilities services like electricity, gas, water, and sewage.