Wages Are Paid to _{--------------------} and Interest Is Paid To_{--------------------}

question 116

Multiple Choice

Wages are paid to _{--------------------} and interest is paid to_{--------------------} .

• A)entrepreneurs; land
• B)labor; entrepreneurs
• C)labor; land
• D)labor; capital
• E)entrepreneurs; capital

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Definitions:

Land Improvements

Enhancements made to a parcel of land to increase its value, such as landscaping, fencing, and paving.

Personal Property

Personal property encompasses any movable property that is not attached to or associated with real estate, such as vehicles, furniture, and electronic devices.

Units-of-Activity

A depreciation method that allocates an asset's cost based on its usage, activities, or units of production rather than the passage of time.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate at which an asset depreciates compared to the straight-line depreciation method.