Which of the Following Is the Best Example of a Fixed

question 73

Multiple Choice

Which of the following is the best example of a fixed asset that will be physically inspected by the auditor in the period under audit?

• A)An adding machine acquired in the current period.
• B)A warehouse purchased three years previously.
• C)An office building constructed in the current period.
• D)Desktop computers purchased in the previous period.

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Definitions:

Maximum Profit

The highest possible financial gain a firm can achieve when the difference between total revenue and total cost is at its greatest.

Economic Profit

The split between a firm's entire proceeds and its total disbursements, embracing both acknowledged and veiled costs.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, equating to the opportunity cost of the resources employed.