The Observation That Additions to Fixed Assets Are Lumpier Than

question 101

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 be acquired only through external funding.
• C) current assets can be acquired in smaller increments.
• D) dollar for dollar, fixed assets are more expensive than current assets.

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Definitions:

Labour

The human effort, whether physical or mental, contributed towards the production of goods or services in an economy.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their businesses.

New Technology

The latest advancements or innovations in technology that offer improved solutions or efficiency.