D & R Products Forecasts That It Will Require R10

question 54

Multiple Choice

D & R Products forecasts that it will require R10 000 for equipment and depreciation will be over five years.The R10 000 will be reflected in the statement of financial position as _____.

• A)inventory
• B)gross fixed assets
• C)net fixed assets
• D)trade payables

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Definitions:

Monetary Transactions

Financial activities involving the transfer of money from one party to another, can include both domestic and international transactions.

Final Goods

Products or goods that are ready for sale to the end consumer and will not be transformed into another product.

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, removing the effects of inflation to compare one period with another.