The Book Value of a Long-Lived Tangible Asset Is Equal

question 200

Multiple Choice

The book value of a long-lived tangible asset is equal to:

• A)its acquisition cost less the accumulated depreciation from the acquisition date to the balance sheet date.
• B)its acquisition cost plus accumulated depreciation from the acquisition date to the balance sheet date.
• C)the amount that could be obtained for the asset on the balance sheet date if it were sold.
• D)the annual cost of carrying the asset in inventory.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level at a specific time.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale, holding other factors constant.

Equilibrium Price

The market price at which the supply of an item equals the quantity demanded.

Equilibrium Quantity

The volume of goods or services that are both presented and required at the price where supply meets demand in a market.