Inventory,equipment,and Building Are Examples of What Kinds of Assets

question 58

Multiple Choice

Inventory,equipment,and building are examples of what kinds of assets?

• A) Intangible assets
• B) Tangible assets
• C) Only current assets
• D) Only long-term assets

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Definitions:

Depreciation

The systematic reduction of the recorded cost of a fixed asset to reflect its loss in value over time, often due to wear and tear or obsolescence.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profit made.

Gross Profit

The financial difference between the revenue generated from sales and the cost of goods sold, not accounting for other operating expenses.