Which of the Following Statements About Accounting for Changes in Fixed

question 62

Multiple Choice

Which of the following statements about accounting for changes in fixed assets is NOT true?

• A) When a firm is not operating at full capacity, sales may be decreased without adding any new fixed assets.
• B) Since it requires time to get new assets operational, they are added as the firm nears full capacity.
• C) Fixed assets are added in large discrete units called lumpy assets.
• D) All of these

---

Definitions:

Groundwater Supplies

Underground sources of fresh water stored in aquifers, crucial for drinking water, irrigation, and industrial uses.

Sulphur Content

The quantity of sulfur present in a material, which is significant in assessing air pollution potential, especially in fuels.

Crude Oil Reserves

Quantities of crude oil that are identified and accessible for extraction with current technology.

Arctic National Wildlife Refuge

A protected area in Alaska, United States, known for its natural beauty, diverse wildlife, and ongoing debates over oil exploration.