The Annual Allocation of the Cost of a Long-Term Asset

question 109

Multiple Choice

The annual allocation of the cost of a long-term asset is recorded as a(n) _____.

• A)depreciation expense
• B)operating expense
• C)accrual expense
• D)cost of goods sold

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Definitions:

Labor Force

The total number of people employed or actively seeking employment in a specified market or economy.

Tangible Capital

Physical assets owned by a firm or individual that are used in the production process, such as machinery, buildings, and equipment.

Intangible Capital

Non-physical assets possessed by a company, such as intellectual property, brand recognition, and goodwill.

Human Capital

The set of skills, knowledge, abilities, and attributes that individuals can use to create economic value.