Book Value of Old Equipment Is Considered to Be a

question 59

Multiple Choice

Book value of old equipment is considered to be a

• A) relevant cost.
• B) semi-relevant cost.
• C) sunk cost.
• D) cost that can be changed by a present or future decision.

---

Definitions:

Supplies

Materials or items used in the operation of a business or needed in the process of providing a service or making goods.

Accounts Payable

Liabilities owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving insight into its financial health.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in a net profit or loss.