Statement 1: All the Fixed Assets in the Company Are

question 21

Multiple Choice

Statement 1: All the fixed assets in the company are more than 10 years old. Statement 2: Some of the fixed assets in the company are plant and machinery.
Assuming that Statement 1 and 2 are true,which of the following is correct based on logical deduction?

• A) All plant and machinery in the company is more than 10 years old.
• B) Most plant and machinery in the company is more than 10 years old.
• C) No plant and machinery in the company is more than 10 years old.
• D) Very little of the plant and machinery in the company is more than 10 years old.

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Definitions:

Reportable Segment

A part of an organization that engages in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the organization's chief operating decision maker.

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, including segments with related products, services, or geographic areas.

Quick Assets

Liquid assets that can be rapidly converted into cash without significantly affecting their value, including cash, marketable securities, and receivables.

Current Receivables

Financial assets expected to be converted into cash within one year, including money owed by customers (accounts receivable).