Which of the Following Items Would Be Classified as Committed

question 47

Multiple Choice

Which of the following items would be classified as committed resources (short-term) ?

• A)salaried employees
• B)depreciation on building
• C)fuel to generate electricity internally
• D)lease on machinery

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Definitions:

Indemnity

A primary obligation of a third party to pay a debt along with the debtor

Subrogation

The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury.

Guarantor

A person assuming obligation to pay if the debtor does not.

Real Property

Land, buildings attached to the land, and items called fixtures, that is, items that are attached to the land or to a building or to another fixture attached to the land.