Which of the Following Statements Is TRUE

question 114

Multiple Choice

Which of the following statements is TRUE?

• A)Land does not depreciate; natural resources are depreciated.
• B)Land does not depreciate; buildings depreciate, and natural resources are amortized.
• C)Land does not depreciate; natural resources are depleted and intangibles are amortized.
• D)Land does not depreciate; buildings and natural resources depreciate.

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Definitions:

Organizational Expenses

Costs incurred during the formation of a corporation, partnership, or any business entity, such as legal and administrative fees.

Intangible Assets

Non-physical assets such as patents, trademarks, and goodwill that have value to a business.

Balance Sheet

A financial document that outlines the resources, obligations, and shareholder equity of a company at a given point, showing its economic condition.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate income.