From an Accounting Standpoint the Acquisition of Productive Facilities Can

question 31

Multiple Choice

From an accounting standpoint the acquisition of productive facilities can be thought of as a long-term

• A) accrual of expense.
• B) accrual of revenue.
• C) accrual of unearned revenue.
• D) prepayment for services.

---

Definitions:

Blank Indorsement

An endorsement on a financial instrument, such as a check, that specifies no endorsee, making it payable to the bearer.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Deposit Only

A restriction placed on a bank account, indicating that the funds can only be deposited and cannot be directly withdrawn or used for other transactions.

Restrictive Endorsements

Limiting conditions or instructions written on the back of negotiable instruments, like checks, controlling their use or further transfer.