An Inventory Item Can Be

question 37

Multiple Choice

An inventory item can be

• A)Only a parent
• B)Only a component
• C)Both a parent and a component
• D)Either a parent or a component, but not both

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Definitions:

Original Cost

The initial expenditure involved in acquiring an asset, including purchase price, transportation, and installation.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the upcoming year.

Usefulness

The quality of being practical and beneficial, especially in decision-making or assessing value.