Which of the Following Are Criteria for Determining Whether to Record

question 175

Multiple Choice

Which of the following are criteria for determining whether to record an asset as a fixed asset?

• A) must be an investment and long-lived
• B) must be long-lived and used by the company in its normal operations
• C) must be short-lived and tangible
• D) must be tangible and an investment

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Definitions:

National Supremacy

The principle that federal law takes precedence over state law in the United States.

Treaties

Formal agreements between two or more sovereign states that are governed by international law.

Reserved Powers

Reserved powers refer to the authorities and rights not explicitly granted to the federal government by the Constitution, therefore reserved for the states and the people, as outlined in the Tenth Amendment of the United States Constitution.

Tenth Amendment

An amendment to the United States Constitution stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.