Unless Fixed Assets Are Continually Reevaluated for Appropriateness

question 18

Multiple Choice

Unless fixed assets are continually reevaluated for appropriateness,

• A) businesses lose their competitive edge.
• B) companies must pay back earnings.
• C) equity increases.
• D) retained earnings grow.
• E) labor costs increase.

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Definitions:

Annually

A term describing an event or calculation made once every year.

Discount Rate

The interest percentage utilized in calculating today's value of future cashflows.

Trust Agreement

A legal document that outlines the terms and conditions under which a trust is to be managed and specifies the rights and duties of the parties involved.

Inheritance

A legal process through which assets, titles, debts, rights, and obligations are received from someone's estate after their death.