Which of the Following Is LEAST Likely Be Purchased on a Long-Term

question 95

Multiple Choice

Which of the following is LEAST likely be purchased on a long-term contractual basis?

• A)Component parts for mass production
• B)Office supplies purchased for a small office
• C)Continuous supply products
• D)Raw materials

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Definitions:

Initial Investment

The initial amount of money spent to start a project, purchase an asset, or invest in a business venture.

Accounting Equation

The foundational principle of accounting that states assets equal liabilities plus equity.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases of goods and services on credit.

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.