Assets That a Business Owns That Can Be Seen and Examined

question 37

Multiple Choice

Assets that a business owns that can be seen and examined are known as ______.

• A) intangible assets
• B) tangible assets
• C) long-term equity
• D) accounts payable

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Definitions:

Retention Ratio

The proportion of net income that is retained in the company rather than paid out to shareholders as dividends.

Growth Rate

A measure of the increase in size, number, value, or strength of a business or other entity's key metric over a specified period of time.

Pro Forma

Financial statements prepared in advance of a planned transaction, such as a merger, acquisition, or new capital investment, showing the projected financial results.

Full Capacity

The maximum level of output that a company can sustain over a period of time using its resources efficiently.