Which of the Following Assets Is Never Expensed on the Statement

question 60

Multiple Choice

Which of the following assets is never expensed on the Statement of Income?

• A)land
• B)building
• C)inventory
• D)equipment

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Definitions:

Fair Value Accounting

An accounting approach where companies measure and report the values of their assets and liabilities on the basis of the actual or estimated fair market prices.

Book Value

The net value of a company's assets minus its liabilities, as recorded on its financial statements.

Market Valuations

The process of determining the present value of an asset or a company based on market prices, often used to evaluate the worth of stocks or other securities.

Quick Ratio

A financial metric that assesses a company's ability to pay its current liabilities without relying on the sale of inventory.