All of the Following Accounts Are Considered to Be Fixed

question 122

Multiple Choice

All of the following accounts are considered to be fixed assets on the balance sheet except:

• A)buildings
• B)equipment
• C)marketable securities
• D)machinery
• E)all of the above are fixed assets

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Definitions:

M&M Proposition II

A firm’s cost of equity capital is a positive linear function of its capital structure.

Cost of Capital

The cost of funds used for financing a business, typically considered as the weighted average of the costs of equity and debt financing.

Tax Rate

The amount of tax a person or company must pay, expressed as a percentage of income.