Which of These Is Not an Example of a Fixed

question 14

Multiple Choice

Which of these is not an example of a fixed asset for a company engaged in mining coal?

• A) Land
• B) Storage depot
• C) Stock of coal
• D) Mining equipment

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Definitions:

Operating Expenses

Incurred expenses not directly tied to the production of goods or services, such as administrative and sales expenses, that are necessary for running a business.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Net New Borrowing

The difference between the amounts a company has borrowed and repaid during a specific period, indicating how much new debt it has taken on.

Millions

A numeral unit representing one thousand thousand, or 1,000,000, often used to quantify large values such as population, currency, or data.