Investments in Long-Lived Assets, with Useful Lives (Or Service Lives)

question 23

Multiple Choice

Investments in long-lived assets, with useful lives (or service lives) that can extend for several or many years such as land, buildings, and equipment represent _____ capital.

• A)sunk
• B)hard
• C)physical
• D)intangible
• E)soft

---

Definitions:

Additional Revenue

Income generated from activities not related to the primary operation of the business.

Straight-Line Depreciation

A scheme for disbursing the expenditure of a physical property over its operational lifespan in equivalent annual quotas.

Capital Budgeting

The process of evaluating, comparing, and selecting the best projects to invest in to maximize a firm’s value, considering long-term investments.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.