Which of the Following Is a Primary Characteristic of a Transaction-Specific

question 23

Multiple Choice

Which of the following is a primary characteristic of a transaction-specific asset?

• A)It has the ability to generate value only when used for several purposes together.
• B)It is an intangible asset whose value is very hard to evaluate.
• C)It is an asset that can be transported or transferred with ease.
• D)It can generate maximum value only when used for a particular purpose.

Analyze how various financial activities affect a firm's cash flow.

Understand the components and significance of the cash cycle in business operations.

Recognize the effects of accounts payable and receivable on a company's liquidity.

Grasp the relationship between the operating cycle and cash cycle.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to the economic well-being of consumers.

College Tuition

The fee that students pay to attend a college or university, covering costs such as instruction, facilities, and sometimes room and board.

Supply

The total amount of a specific good or service that is available to consumers at a given price level and time.

Elastic

Describing a situation where the demand or supply for a good or service is sensitive to changes in price.