Which Statement Is True Concerning Operating Assets

question 91

Multiple Choice

Which statement is true concerning operating assets?

• A)Operating assets have no physical properties.
• B)A company's operating assets are important to its short-term liquidity.
• C)Operating assets are used over two or more periods to generate revenues.
• D)All operating assets are reported on the income statement

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Definitions:

Crowding Out Effects

Refers to a situation where increased government spending leads to a reduction in private sector investment due to rising interest rates.

ARRA

The American Recovery and Reinvestment Act of 2009, a legislative package aimed at stimulating the U.S. economy during the financial crisis through investment in infrastructure, education, health, and renewable energy.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often enacted by a governmental or corporate entity.

Short Run

A period in economics during which at least one input, such as factory capacity, is fixed and cannot be changed.