Services Can Be Classified According to Whether They Are Delivered

question 325

Multiple Choice

Services can be classified according to whether they are delivered by people or equipment,whether they are for profit or nonprofit organizations,and whether they are __________.

• A)government agencies
• B)a national organization or a global organization
• C)privately owned or publicly owned
• D)performed by independent contractors
• E)owned by individuals or corporations

---

Definitions:

Depreciable Assets

Assets whose cost is allocated over their useful lives due to usage, wear and tear, or obsolescence.

Annual Depreciation

The portion of an asset's cost that is allocated as an expense each year over its useful life through the process of depreciation.

Salvage Values

Salvage Values represent the estimated residual value of an asset after its useful life has ended and it has been fully depreciated.

Useful Lives

The estimated periods of time over which fixed assets, such as machinery or buildings, are expected to be used by a business.