Long-Term Assets Generally Include

question 28

Multiple Choice

Long-term assets generally include:

• A) Inventory held for sale.
• B) Prepaid rent.
• C) Accounts receivable.
• D) Land held for a possible future plant site.

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Definitions:

Revenue Expenditures

Costs that are expensed immediately and relate to the maintenance and repair of fixed assets or to the costs of the goods sold.

Construction

The process of building or assembling infrastructure, buildings, or other substantial physical structures.

Overhaul

A comprehensive process of inspection and repair to ensure an equipment or system operates efficiently.

Double-declining-balance Method

A method of depreciation that accelerates the depreciation of an asset by applying a fixed rate to its declining book value.