The Observation That Additions to Fixed Assets Are "Lumpier" Than

question 18

Multiple Choice

The observation that additions to fixed assets are "lumpier" than additions to current assets indicates that:

• A)Fixed assets depreciate over time
• B)Fixed assets can only be acquired through external funding
• C)Current assets can be acquired in smaller increments
• D)Dollar for dollar, fixed assets are more expensive than current assets

---

Definitions:

Exponential Decay

A decrease in quantity that occurs at a rate proportional to the current total, often seen in contexts like radioactive decay.

Arithmetic Operations

Core math processes involving plus, minus, times, and divided by.

Percentage Calculation

The process of determining the portion or fraction of a whole that is represented by a specific number, often used in financial and statistical analyses.

Financial Calculation

The process of applying mathematical methods and formulas to analyze or predict financial outcomes.