Which of the Following Is/are True Regarding Long-Lived Assets with a Finite

question 93

Multiple Choice

Which of the following is/are true regarding long-lived assets with a finite life?

• A)The firm consumes the asset's services over time in generating revenues.
• B)The balance sheet carrying value decreases over time as the firm recognizes the cost of the asset as an expense.
• C)A portion of the acquisition cost is recognized as an expense each period.
• D)Management must estimate the asset's finite life.
• E)all of the above

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Definitions:

Economic Resource

Any resource used by humans to produce goods or services, including labor, capital, land, and entrepreneurship.

Real Capital

Physical assets like machinery, buildings, and technology that are used in production to create value.

Resource

An economic or productive factor required to accomplish an activity, often categorized into natural resources, human resources, and capital resources.