A Manufacturer of Plastic Bottles for the Medical Trade Purchases

question 69

Multiple Choice

A manufacturer of plastic bottles for the medical trade purchases a new compression blow molder for its bottle production plant. How will the cost to the company of this piece of equipment be recorded?

• A) It will be depreciated over time on the income statement and subtracted as a capital expenditure on the statement of cash flows.
• B) It will be depreciated over time on the income statement and subtracted as Inventory on the statement of cash flows.
• C) It will be depreciated over time on the income statement and therefore not be recorded separately on the statement of cash flows.
• D) It will be subtracted from Gross Profit on the income statement and therefore, not be recorded separately on the statement of cash flows.

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Definitions:

Environmental Influences

External factors that affect an individual's behavior, decisions, and lifestyle.

Performance Appraisals

The systematic evaluation of employees' job performance and productivity to provide feedback, guide future performance, and inform decisions on promotions, compensations, and development.

Recruitment Techniques

Strategies and methods used by organizations to identify, attract, and select potential employees.

Behavioral Science

The study of human and animal behavior through observation and experimentation, applying multidisciplinary principles.