If Allison Drives to a Large City 100 Miles from Her

question 146

Multiple Choice

If Allison drives to a large city 100 miles from her small community to do her back-to-school shopping,this will:

• A)hurt Allison's community because Allison's spending will be income for people in the large city.
• B)hurt the city because Allison will take the goods that she purchases back home to her small town.
• C)help Allison's community because Allison's shopping in the big city leaves more goods for the other small-town residents to buy.
• D)help the city because people from small towns usually buy things that people in big cities don't want.

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Definitions:

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, or the number of production or similar units expected to be obtained from the asset by an entity.