The Fixed Assets Owned by a Company Are Considered to Be

question 89

Multiple Choice

The fixed assets owned by a company are considered to be long-term because:

• A)The high cost of the fixed assets demands that they not be considered short term.
• B)They are purchased with the intent of benefitting the company for a long period of time.
• C)The assets will last for a long period of time.
• D)All of the above are reasons the fixed assets are considered to be long-term.

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Definitions:

Cash Receipts Journal

A financial journal used to record all cash inflows, tracking receipts from sales, loans, investments, and other sources.

Revenue Journal

A specialized accounting journal used to record the company's revenue transactions, distinguishing them from other types of financial transactions.

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.