Consider the Following Items

question 42

Multiple Choice

Consider the following items:
Land
Accounts Receivable
Notes Payable (due in three years)
Accounts Payable
Retained Earnings
Prepaid Rent
Unearned Revenue
Buildings
Notes Payable (due in six months)
Equipment
How many of the items listed above are generally long-term assets?

• A)Two.
• B)Three.
• C)Four.
• D)Five.

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Definitions:

Break-Even Time

The period it takes for a business to recover its investments or expenses and start generating profit.

Highest Rank

Refers to the position or level within a hierarchy or organizational structure that is at the top or most senior.

Payback Periods

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Investments

Items or resources purchased with the intention of earning income or increasing in value as time goes on.