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:

Market Price

The current exchange rate for a service or asset in the open market.

Zero-Coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value, with the full face value being repaid at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until the date of its maturity, expressed as an annual rate.

Zero-Coupon Bonds

Bonds that do not pay interest during their lifetime but are issued at a discount to their face value, thus generating profit at maturity.