John Happened to Stop by a Showroom and Test Drive

question 91

Multiple Choice

John happened to stop by a showroom and test drive a new Acura LX and then decided he should replace his 2001 clunker before starting his new job. What has occurred?

• A) impulse shopping
• B) marketing benefit
• C) need recognition
• D) opportunity recognition

Grasp the criteria for capitalizing expenditures and distinguishing between capital and revenue expenditures.

Learn the journal entry preparation for disposal of fixed assets and understanding the effect on financial statements.

Know the accounting treatment for intangible assets including amortization, impairment, and write-offs.

Comprehend the accounting rules for asset trade-ins and how they affect the cost basis of the new asset.

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Definitions:

Type A

A personality type characterized by competitiveness, self-criticism, time urgency, and a heightened response to stress.

Achievement-Motivation

is a personal drive to overcome challenges, master tasks, and reach high standards of excellence, influenced by an individual's desire for success and fear of failure.

Driven

Being highly motivated or determined to achieve specific goals, often displaying a strong sense of purpose.

Compressed Workweek

A flexible work arrangement where a standard workweek is condensed into fewer days, typically allowing employees to have longer weekends.