Cab Drivers in Metro City Charge $4 Per Mile Plus

question 4

Multiple Choice

Cab drivers in Metro City charge $4 per mile plus a fixed charge of $2 for the tip. If a tourist pays $46 for a cab ride, then how many miles was the cab ride?

• A) 10 miles
• B) 13 miles
• C) 14 miles
• D) 11 miles

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Definitions:

Act of Nature

Natural events outside of human control, such as earthquakes, floods, or hurricanes, that can cause damage or affect contracts and liabilities.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants.

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Loss on Disposal

An expense recorded when an asset is sold for less than its carrying amount on the balance sheet.