What Is Meant by the Term Utility

question 112

Multiple Choice

What is meant by the term utility?

• A)A measure of a product's usefulness.
• B)A measure of necessity.
• C)The satisfaction or pleasure derived from the consumption of a product.
• D)The benefit derived from the production of a product.

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Definitions:

Intangible

Assets that lack physical substance but possess value, such as patents, trademarks, and goodwill.

Fair Value

An estimate of the market value of an asset or liability, based on the current price at which an asset could be sold or a liability settled in a fair transaction between willing parties.

Double Declining-Balance

An accelerated depreciation method that doubles the normal depreciation rate, reducing the book value of assets more quickly in the initial years.

Normal Balance

The expected debit or credit balance of an account, indicating its typical financial activity and position in the accounting equation; a different phrasing from the first definition.