Which One of the Following Statements Is Correct Concerning a Firm's

question 51

Multiple Choice

Which one of the following statements is correct concerning a firm's fixed assets?

• A)The market value is the expected selling price in today's economy.
• B)The market value is affected by the accounting method selected.
• C)The market value is equal to the initial cost minus the depreciation to date.
• D)The book value is equal to the market value minus the accumulated depreciation.
• E)The book value is the greater of the initial cost or the current market value.

---

Definitions:

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.

Unit Selling Price

The price for which a single unit of a product is sold, not including any additional fees or charges.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent or salaries.

Operating Income

Represents the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold from gross revenue.