Land Improvements Are

question 25

Multiple Choice

Land improvements are:

• A) Assets that increase the usefulness of land, and like land, are not depreciated.
• B) Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation.
• C) Included in the cost of the land account.
• D) Expensed in the period incurred.
• E) Also called basket purchases.

---

Definitions:

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.

Cost Of Goods Sold

Costs that are directly related to the production of goods a company sells, encompassing expenses for labor and materials.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the profitability of a company.