The Term _____ Implies Active and Frequent Buying and Selling

question 73

Multiple Choice

The term _____ implies active and frequent buying and selling with the objective of generating profits from short-term changes in market prices.

• A)gambling
• B)mad money
• C)conjecture
• D)trading
• E)ka-ching

---

Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for a tangible asset over each year of its useful life.

Units-Of-Production

Units-of-production is a method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces, reflecting wear and use more accurately.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to use and time.

Salvage Value

The predicted sale value of an asset at the end of its operational life.