Determine the Proper Classification(s) of a House Owned and Used

question 9

Multiple Choice

Determine the proper classification(s) of a house owned and used by Rhonda as her insurance agency office.
I.Personal use property.
IV.Intangible property.
II.Business use property.
V.Real estate.
III.Tangible property.
VI.Personal property.
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• A)Statements I, III, and V are correct.
• B)Statements II, III, and V are correct.
• C)Only statements I and V are correct.
• D)Only statement V is correct.
• E)Only statement II is correct.

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Definitions:

Net Operating Income

This metric measures the profitability of a business from its primary operations, excluding expenses from financing and taxes.

Budgeting

The process of creating a plan to allocate resources, forecast revenues, and predict expenses over a future period.

Activity Variance

A measure of the difference between planned or budgeted activity levels and actual activity levels.

Personnel Expenses

Costs related to the compensation and benefits of a company's employees.