Which of the Following Long-Lived Assets Is Not Amortized or Depreciated

question 68

Multiple Choice

Which of the following long-lived assets is not amortized or depreciated to an expense?

• A) Equipment use in production of inventory goods
• B) Land improvements
• C) Land
• D) Company computers replaced every two years

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Definitions:

Raw Material Purchases

The acquisition of basic materials that are either consumed in the production process or included as part of the finished goods.

Expected Cash Collections

The projected amount of money a company anticipates receiving from customers over a specific period, based on sales and credit terms.

Budgeted Sales

The projected amount of sales revenue a company expects to achieve during a specific period, often part of financial planning.

Budgeted Raw Material Purchases

The estimated amount a company plans to spend on raw materials for production over a specific period.