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:

Rental Price

The cost paid periodically by a lessee to use the assets of another entity.

Marginal Product

The additional output that is produced by using one more unit of a factor of production, all other inputs remaining constant.

Profit

Total revenue minus total cost.

Diminishing Marginal Product

The principle that as more of a variable input is added to a fixed input, the additional output produced from each new unit of input will eventually decrease.