Classify Each of the Following Costs Associated with Long-Lived Assets

question 108

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Freight costs paid on purchase of new equipment

• A)Buildings
• B)Machinery and equipment
• C)Land
• D)Land improvements

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Definitions:

Clear All Markets

A theoretical situation where supply equals demand in all markets, leading to economic equilibrium.

Efficiency

The ability to accomplish a task or a set of tasks with the minimum expenditure of time and resources.

Equity

Fairness or justice in the way people are treated and decisions are made, often relating to economic policies or distribution of resources.

Capital Flows

The transfer of funds to support trade, investment, or business activities, domestically or across borders.