Asked by Yessie Musah on Jul 03, 2024
Verified
Sprocket and Widget is a garment manufacturing company.Which of the following would be a fixed asset for Sprocket and Widget?
A) U.S.Treasury bills
B) Temporary workers
C) $5,000 in Treasury bills
D) $1000 trade credit
E) Office furniture
Garment Manufacturing
The process of converting fabric into clothing through a series of operations like cutting, stitching, and finishing.
Treasury Bills
Short-term debt obligations the U.S. government sells to raise money.
- Discern and arrange various kinds of assets and liabilities in a business environment.
Verified Answer
MT
Maria TerraziJul 09, 2024
Final Answer :
E
Explanation :
Office furniture is a fixed asset because it is a long-term tangible piece of property that a company owns and uses in its operations to generate income. Fixed assets are not intended for resale but are used over time. U.S. Treasury bills, temporary workers, and trade credit do not qualify as fixed assets. Treasury bills are short-term investments, temporary workers are considered labor expenses, and trade credit is a form of short-term financing.
Learning Objectives
- Discern and arrange various kinds of assets and liabilities in a business environment.