In 1999,the Denim Company Bought Land That Cost $15,000

question 107

Multiple Choice

In 1999,the Denim Company bought land that cost $15,000.In 2005,a similar piece of land was bought for $28,000 and the company's existing land was estimated to be worth $18,000.On the balance sheet at the end of 2005,the land that was purchased in 1999 would be reported at:

• A)$15,000.
• B)$28,000.
• C)$18,000.
• D)the average of the three prices.

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Definitions:

Functional Structure

Functional Structure refers to an organizational form where the company is divided into departments each handling a specific function, like marketing or finance, concentrating expertise but potentially limiting inter-department communication.

Vertical Structure

An organizational structure where authority flows from the top down, with a clear line of command.

Customer Structure

The composition and organization of a business's clientele, including types of customers and their relationship to the business.

Geographical Structure

An organizational structure that groups employees or departments based on geographic regions or locations.