The Rate of Return on Fixed Assets Is Normally Assumed

question 41

Multiple Choice

The rate of return on fixed assets is normally assumed to be the rate of return on current assets (especially cash and marketable securities) .

• A)less than
• B)greater than
• C)equal to
• D)none of these answers is correct.

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Definitions:

Service Contract

A contract that covers services for equipment that are not included in a standard maintenance contract.

Parts Replacement

The process of substituting a damaged or worn-out component of a machine or system with a new one to ensure functionality.

Reorder Point

Reorder Point is the inventory level at which new stock should be ordered to avoid running out, determined by usage rates and delivery times.

Cards

Small, typically rectangular pieces of plastic or thick paper that contain information and can be used for various purposes, including transactions, identification, or gaming.