Critical Thinking Questions Case 7-2 You Began Work as a Consultant

question 57

Multiple Choice

Critical Thinking Questions Case 7-2 You began work as a consultant to individuals and businesses, making recommendations to them about the kinds of systems they should buy and what equipment they should have. Aaron is a user who travels extensively. Which of the following is he NOT likely to need?

• A) cloud storage
• B) portable hard disk for backup
• C) 2.5 TB hard disk
• D) USB flash drive

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Definitions:

Investment Revenue

Refers to the income earned from investing in assets like stocks, bonds, real estate, or other investment vehicles.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee but does not control it outright.

MACRS Depreciation

The Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. that allows for faster depreciation of assets over time for tax purposes.

Temporary Differences

The differences between the accounting income and taxable income that are not permanent and will reverse in future periods.