A Local Bakery Is Acting as a _____ When It

question 137

Multiple Choice

A local bakery is acting as a _____ when it sells desserts to a restaurant.

• A)wholesaler
• B)retailer
• C)franchiser
• D)franchisee

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Definitions:

Remaining Useful Life

The estimated period during which an asset is expected to be economically usable by one or more entities, with consideration for its anticipated obsolescence.

Carrying Amount

The book value of assets or liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment charges.

Equity Method

A method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. The investor’s profit or loss includes its share of the investee’s profit or loss and the investor’s other comprehensive income includes its share of the investee’s other comprehensive income.

Investment

An asset or item acquired with the goal of generating income or appreciation over time.