Which of the Following Is Usually the Largest Fixed Expense

question 53

Multiple Choice

Which of the following is usually the largest fixed expense for a new vehicle?

• A)Insurance
• B)Gasoline
• C)Registration, license, and fees
• D)Parking
• E)Depreciation

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Definitions:

Compensation

The payment or benefit given to someone in exchange for services or as a recompense for losses.

Obligations

Duties or commitments that one is bound to fulfill legally or morally.

Cash Conversion Cycle

An indicator that calculates the duration required for a business to transform its inventory investments and additional resources into cash flows resulting from sales.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.