Which One of the Following Is an Example of the Expected

question 49

Multiple Choice

Which one of the following is an example of the expected benefit approach for valuing long-lived assets?

• A)Historical cost.
• B)Current replacement value.
• C)Current cost.
• D)Discounted present value.

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Definitions:

Operating Expenses

Expenses incurred through the normal operations of a business, including salaries, rent, utilities, and marketing expenses, but excluding cost of goods sold and other non-operating expenses.

Merchandise Sold

Goods that have been sold and delivered to customers, generating revenue for the selling company.

Free Cash Flow

It refers to the amount of cash a company generates after accounting for capital expenditures, such as buildings or equipment. This cash can be used for expansion, dividends, or other purposes.

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting liquidity.