Which of the Following Is an Example of a Fixed

question 4

Multiple Choice

Which of the following is an example of a fixed asset for a music store?

• A) A central computer that is used to manage the store's inventory
• B) Sheet music
• C) Classical and electric guitars
• D) A selection of jazz CDs
• E) An assortment of music stands

---

Definitions:

Periodic Inventory Method

The periodic inventory method is an accounting approach where the inventory value is updated at specific intervals, relying on physical counts to determine cost of goods sold and ending inventory levels.

Voucher Payment

A method of paying bills where a record is kept of all invoices and payments.

Discount Lost

The additional expense a company incurs when it fails to take advantage of the payment terms offered by suppliers, like missing early payment discounts.

Gross Method

Accounting treatment for purchase discounts where discounts are not considered until actually taken.