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.

---

Definitions:

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Defense

Psychological mechanisms or strategies employed by individuals to protect themselves from perceived threats or to manage uncomfortable emotions.

Distortion

The alteration of the original shape or other characteristics of something, often in a way that misrepresents or changes meaning or perception.

Rogers

Refers to Carl Rogers, a prominent figure in psychology known for his contributions to humanistic psychology and the client-centered therapy approach.