Which of the Following Assets Does not Decline in Service

question 6

Multiple Choice

Which of the following assets does not decline in service potential over the course of its useful life?

• A)office equipment
• B)furnishings
• C)land
• D)computers

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) or income and expenses is represented as a proportion of a total account.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data across different periods, to identify trends and growth patterns by analyzing changes in line items.

Base Year Amount

A reference value of an economic indicator or financial metric used for comparison over time, typically set in a specific starting year.