Acquisitions of Long-Term Assets

question 118

Multiple Choice

Acquisitions of long-term assets:

• A) Have no impact on cash flows.
• B) Are investing activities.
• C) Can involve cash outflows.
• D) Are investing activities and can involve cash outflows.
• E) Have no impact on cash flows and are investing activities.

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Definitions:

Equitable Way

Equitable way refers to a manner or approach that is fair, impartial, and just, ensuring equal treatment and opportunities for all involved parties.

Binding Price Floor

A minimum price set by the government above the equilibrium price, causing a surplus of the product in the market.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Binding Price Floor

A price floor set above the equilibrium price, causing a surplus by legally preventing the price from falling to its natural equilibrium level.