In Accounting for Changes in Fixed Assets, Which One of the Following

question 64

Multiple Choice

In accounting for changes in fixed assets, which one of the following statements is NOT true?

• A) When a company is not operating at full capacity, sales may be increased without adding any new fixed assets.
• B) Since it requires time to get new assets operational, they are added in small discrete quantities.
• C) Fixed assets are added in large discrete amounts called lumpy assets.
• D) All of the above are true.

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Definitions:

Passive-Voice

A grammatical voice that emphasizes the action being done to the subject of the sentence, rather than who is performing the action.

Subject

The primary topic or entity being discussed or studied in a document, conversation, or analysis.

Action

The process or state of acting or doing something, typically to achieve a specific goal or result.

Antecedent

Refers to a thing or event that existed before or logically precedes another.