Which of the Following Statements About Charts Is True

question 33

Multiple Choice

Which of the following statements about charts is true?

• A) Charts are meant solely for conveying simple numerical information.
• B) Important business ideas or relationships should not be explained through charts.
• C) Charts should not require much mental effort for the reader.
• D) The title of a chart should be at least ten words long.
• E) Charts have fewer limits than tables in the amount of information they can provide.

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Definitions:

Operating Leases

Leases in which the lessee obtains the right to use an asset for a short period of time, without assuming the risks and rewards of ownership.

Initial Direct Costs

Expenses that are directly attributable to negotiating and arranging a lease, which are added to the carrying amount of the leased asset or deducted from the leasing income.

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.

Asset's Economic Life

The period over which an asset is expected to be economically useful to the owner.