An Asset Is

question 203

Multiple Choice

An asset is

• A)anything of value owned by a person or a firm.
• B)a payment by a corporation to its shareholders.
• C)a nonmonetary opportunity cost.
• D)anything owed by a person or a firm.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Times Interest Earned

A metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Tax Rate

The percentage at which an individual or corporation is taxed, determining the portion of income or profits that must be paid to the government.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the material and labor costs.