Which of the Following Is NOT an Example of a Risk

question 12

Multiple Choice

Which of the following is NOT an example of a risk of ownership of an asset?

• A) idle capacity;
• B) gains on the eventual sale of the asset;
• C) uninsured damage;
• D) technical obsolescence.

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, indicating its financial performance.

Incurred

Refers to costs or expenses that have been recognized or acquired, usually due to a company's operations or activities.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the price paid for the use of borrowed money or for delaying the repayment of a debt.

Operating Expense

Expenses incurred through normal business operations, like rent, utilities, and payroll.