Adam Owns a Second Hand Car Yard

question 27

Multiple Choice

Adam owns a second hand car yard.In which of the following transactions is Adam not a 'consumer' within the meaning of the ACL?

• A)Adam buys petrol from Caltex to fill up his own Volkswagen Beetle.
• B)Adam buys a second-hand Toyota for his son from a used-car dealer.
• C)Adam buys a Volvo in order to sell it in his yard.
• D)Adam buys a Ferrari as a wedding anniversary present for his wife.

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Definitions:

Book Value

The net value of an asset or company, calculated by subtracting liabilities from assets and often used to assess the worth of tangible assets on balance sheets.

Depreciable Asset

An asset subject to depreciation, representing its decline in value over time due to use or obsolescence.

Useful Life

Useful Life is an accounting estimate of the time period a tangible asset is expected to remain functional and economically viable for its intended purpose.

Depreciation Estimates

Projections made about the reduction in value of a tangible asset over its useful life for accounting and tax purposes.