The Long-Term Asset That Is Not Depreciated or Amortized Is

question 175

Multiple Choice

The long-term asset that is not depreciated or amortized is:

• A)land improvement.
• B)leasehold improvement.
• C)office computers.
• D)land.

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Definitions:

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Economic Value Added

A measure of a company's financial performance based on the premise that true profit occurs when additional wealth is created for shareholders, beyond the cost of capital invested.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Use of Leverage

The practice of using borrowed money to increase the potential return of an investment, which also increases the risk of loss.