Which Statement Is True of Auctions

question 21

Multiple Choice

Which statement is true of auctions?

• A)The organization hosting an auction collects transaction fees for the service.
• B)The number of goods sold via traditional auctions is higher than that sold via online auctions.
• C)Goods already having a set price in the marketplace are usually auctioned.
• D)Online auctions are based on the barter business model.

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Definitions:

Cost of Land

The purchase price and all associated costs, such as legal fees and surveying, of acquiring land for business use.

Asset's Cost

The total amount of money or the value exchanged to acquire, maintain, improve, or replace an asset.

Intended Use

The purpose for which a product or service is specifically designed or for which it is intended to be used.

Average Total Assets

Average total assets are calculated by taking the sum of total assets at the beginning and end of an accounting period, then dividing by two, used for analyzing a company's asset efficiency.