Assets That Are Expected to Provide Economic Benefits for Several

question 14

Multiple Choice

Assets that are expected to provide economic benefits for several years are referred to as

• A)Cash assets.
• B)Short-term assets.
• C)Capital assets.
• D)Balance sheet assets.

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Definitions:

Premium

The amount by which the cost of a financial instrument or insurance policy exceeds its face value or principal.

Interest Expense

Financial obligations an entity must meet for the use of borrowed capital over a set period.

Interest Paid

The total amount of interest paid by the borrower to lenders over a specific period of time for the use of borrowed funds.

Premium

The amount paid for an insurance policy, above the standard cost or for bonds, it's the amount by which the bond's selling price exceeds its face value.