Adam Smith Suggested the Idea Of

question 17

Multiple Choice

Adam Smith suggested the idea of:

• A) absolute advantage
• B) comparative advantage
• C) law of diminishing returns
• D) law of demand

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Definitions:

Fully Depreciated

A state where an asset's cost has been completely expensed over its useful life, reducing its book value to zero or salvage value.

Machinery

Tangible assets used in operations, such as production or manufacturing equipment, that have a useful life beyond one year.

Amortize

The process of spreading out a loan or an intangible asset cost over a specific period of time for accounting and tax purposes.

Accumulated Depreciation

The total depreciation that has been applied to a fixed asset since it was acquired, representing the loss of value over time.