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

question 49

Multiple Choice

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

• A) When a firm 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:

Adaptive

The ability to change or adjust effectively to new conditions, environments, or situations, often considered vital for survival and success.

Developing

The process of growth, progress, or improvement toward a more advanced, complex, or mature state, often used in the context of countries, technology, or skills.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Capable of Survival

Having the means, skills, or conditions necessary to continue existence or operations.