Useful Life Is Expressed in Terms of Time, Units of Activity

question 51

Multiple Choice

Useful life is expressed in terms of time, units of activity, or units of output expected from the asset under the

• A) declining-balance method.
• B) straight-line method.
• C) units-of-activity method.
• D) none of these answer choices are correct.

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Definitions:

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by company insiders.

Market Price

The current market value at which one can buy or sell services or assets.

Merger Premium

The excess amount that an acquiring company pays over the market value of the shares of the company it is buying.

Cash Acquisition

The purchase of a target company using cash as the form of payment rather than stocks or other methods of payment.