Land Acquired So It Can Be Resold in the Future

question 79

Multiple Choice

Land acquired so it can be resold in the future is listed in the balance sheet as a(n)

• A) fixed asset
• B) current asset
• C) investment
• D) intangible asset

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Definitions:

Pricing

The method of determining the value at which a product or service will be sold to consumers.

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.

Premium Pricing

A strategy where goods or services are priced higher than the market average to create a perceived value of higher quality or exclusivity.