According to the Self-Liquidating Debt Principle Permanent Assets Should Be

question 107

Multiple Choice

According to the self-liquidating debt principle permanent assets should be financed with ________ liabilities.

• A) permanent
• B) spontaneous
• C) current
• D) fixed

---

Definitions:

Ideal Standard

Ideal standard refers to a benchmark for perfection in manufacturing or service delivery that assumes no inefficiencies or wastage.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Standard Costs

Predetermined costs to manufacture a single unit of product, used as a benchmark for measuring the actual costs incurred.

Labor Time

The amount of work time that employees spend on various tasks, often measured to analyze productivity or allocate labor costs.