As Hector Was Packing to Return to State University After

question 244

Multiple Choice

As Hector was packing to return to State University after his summer vacation, he realized that he owned many valuable things such as a laptop computer, a stereo system, and a DVD player. An accountant would list all of these as Hector's:

• A) assets.
• B) liabilities.
• C) owners' equity.
• D) intangibles.

---

Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

Investment

This is the allocation of resources, usually money, in the expectation of generating an income or profit.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.