Which of the Following Are Criteria for Determining Whether to Record

question 175

Multiple Choice

Which of the following are criteria for determining whether to record an asset as a fixed asset?

• A) must be an investment and long-lived
• B) must be long-lived and used by the company in its normal operations
• C) must be short-lived and tangible
• D) must be tangible and an investment

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Definitions:

Specific Legacy

A bequest of a particular piece of property or a specific asset left to a named beneficiary in a will.

Wal-Mart Stores

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Remainderman

The person or entity entitled to receive the remainder of an estate or trust once all prior obligations or life estates are satisfied.

Credit Shelter Trust

A legal arrangement allowing a person to bequeath an amount under the estate tax exemption to beneficiaries other than their spouse, minimizing estate taxes.