Long-Term Debt Would Be Used to Finance Which of the Following

question 91

Multiple Choice

Long-term debt would be used to finance which of the following activities?

• A) to replace broken glass in a window
• B) to buy new tablecloths for a restaurant
• C) to provide customer with a cash discount
• D) to pay for a few piece of equipment

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Definitions:

Useful Lives

The expected period of time during which an asset is expected to be usable for the purpose it was acquired.

Revenue

The total amount of money generated from the sale of goods or services, before any expenses are subtracted.

Accumulated Depreciation

Accumulated Depreciation is the total amount of depreciation expense that has been allocated to a tangible asset since it was put into use, reducing its book value.

Carrying Amount

The net amount at which an asset or liability is recognized in the balance sheet, after deducting any accumulated depreciation, amortization, or impairment.