All categories

4 years ago

Your company buys a car, and its value goes down over time. What is that process called?

Business

2 answers:

kozerog [31]4 years ago

4 0

The correct answer would be B. Depreciation

deff fn [24]4 years ago

4 0

The correct answer is B. Depreciation

Explanation

Depreciation is a term used to refer to the decrease in the value of a good or service. In general, depreciation is caused by two main causes, the first is due to degradation of the product that results from its use, and the second is due to obsolescence. For example, cars experience depreciation due to the distance they have traveled because this affects their operation and condition. On the other hand, a technological object such as a cell phone or a computer loses its value, because it becomes obsolete when new models are released.

According to the above, the statement is an example of depreciation because the car that the company bought loses value over time because new models have been released at that time and its use caused the car the degradation of its parts. So, the correct answer is B. Depreciation.

You might be interested in

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly

Harman [31]

C. Product line extension.

7 0

3 years ago

1.) Ocean City Kite Company manufactures & sells kites for $6.50 each. The variable cost per kite is $3.50 with the current

Brut [27]

Answer:

$270,000

Explanation:

Contribution per kite = $6.50 - $3.50 = $3.00

Break even point = 90,000 kites

Since;

Break even point = Fixed cost / Contribution per kite.

We have:

90,000 = Fixed cost / $3.00

Fixed cost = 90,000 * $3.00 = $270,000

Therefore, Ocean City Kite Company's fixed costs is $270,000.

5 0

3 years ago

Use the following information to determine this company's cash flows from financing activities.a. Net income was $466,000. b. Is

Leni [432]

Answer:

The answer is ($174,000)

Explanation:

Cash flows from financing activities show the inflow and outflow of cash that are used to fund the business's operations.

Cash flow from financing activities:

Issuance of common stock......................................$79,000

Payment of dividend........($13,000)

Settlement of notes payable.................................($125,000)

Payment for treasury stock.........…...........................................($115,000)

Net cash from financing activities...............................($174,000)

5 0

3 years ago

Buyers Sam and Linda Pope are entering into a contract with sellers, Jim and Alana Jones in which part of the sale price of the

Alina [70]

Answer:

d) Installment sales contract

Explanation:

A contract is described as an agreement between two or more parties commits to undertakes specific obligations. In a sale contract, the buyer and seller agree to the exchange or foods or services for a consideration called price.

An installment sale contract is an agreement that allows the buyer to make payment for the goods or services over time. Once an agreement has bee reached, the buyer takes possession of products and is free to use them. The buyer makes regular payments for the goods (installments) and will claim ownership upon completing payments. An installment sale contract is a form of credit sale.

8 0

3 years ago

You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have

lesantik [10]

Answer:

It's Best to Pay Your Credit Card Balance in Full Each Month

Explanation:

Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio.

5 0

3 years ago