When an Asset Expires or Is Used Up,it Becomes an Liability

question 85

True/False

When an asset expires or is used up,it becomes an liability.

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Definitions:

External Equity

Refers to funds raised from outside the company, typically through issuing new shares to investors.

External Financing

Funds raised from outside the business, including bank loans, equity investments, and bond issues.

Dividend Payout

The portion of the company's earnings paid out to shareholders, usually in the form of dividends.

Sales Growth

This metric measures the increase in sales revenue over a specific period, indicating the business's ability to grow its operations and revenue.