The Cost of Using a Long-Term Asset (Such as a Vehicle)that

question 66

Multiple Choice

The cost of using a long-term asset (such as a vehicle) that will be used in a business for several years is spread over the asset's useful life.Its annual allocated cost appears on the income statement as a(n) _____ expense.

• A)receivable
• B)inventory
• C)depreciation
• D)variable

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Definitions:

Price Level

The mean market price of all goods and services produced in the current economy.

Aggregate Demand

The total amount of goods and services demanded in an economy at a given overall price level and in a given time period.

Price Level Expectations

Price level expectations refer to the anticipated average price level of goods and services in the economy over a certain period, affecting consumer and business spending decisions.

Government Expenditures

Spending by the government sector including consumption, investment, transfer payments, and net exports.