CM 2113 EXAM 1 WITH ALL CORRECT & 100%
VERIFIED ANSWERS|UPDATED TO PASS
Payments that differ in amount may be equal if made at different points in time is known as
____________. ✔Correct answer-Equivalence
The Time Value of money is based on the premise that money can generate _______ over a period of
time. ✔Correct answer-Interest
T/F Comparing a future cost of one alternative with the present worth cost of a second alternative is
valid and meaningful. ✔Correct answer-False
T/F The reason why the value of money increases with time is because of the interest rate.
✔Correct answer-True
Book Value is the _________ less the depreciable value. ✔Correct answer-Initial Cost
Depreciable Value is the purchase price less the _______________. ✔Correct answer-Salvage
Value
The _________________ of depreciation claims a constant amount on taxes each year. ✔Correct
answer-Straight Line Method
___________ is an artificial expense of an estimated loss that can offset income taxes over a period
of years. ✔Correct answer-Depreciation
Equipment depreciation is a/an ___________. ✔Correct answer-Ownership Cost
Equipment maintenance and repair is a/an ___________. ✔Correct answer-Operating Cost
Equipment service is a/an ___________. ✔Correct answer-Operating Cost
Equipment storage is a/an ___________. ✔Correct answer-Ownership Cost
Fuel to run the equipment is a/an ___________. ✔Correct answer-Operating Cost
Interest paid to finance the cost of the equipment is a/an ___________. ✔Correct answer-
Ownership Cost
Operating costs tend to ________ over time ✔Correct answer-Increase
Ownership costs tend to ________ over time ✔Correct answer-Decrease
Replacing equipment tires are a/an ___________. ✔Correct answer-Operating Cost
Taxes paid on the purchase of a piece of equipment are a/an ___________. ✔Correct answer-
Ownership Cost
The equipment operator is a/an ___________. ✔Correct answer-Operating Cost
VERIFIED ANSWERS|UPDATED TO PASS
Payments that differ in amount may be equal if made at different points in time is known as
____________. ✔Correct answer-Equivalence
The Time Value of money is based on the premise that money can generate _______ over a period of
time. ✔Correct answer-Interest
T/F Comparing a future cost of one alternative with the present worth cost of a second alternative is
valid and meaningful. ✔Correct answer-False
T/F The reason why the value of money increases with time is because of the interest rate.
✔Correct answer-True
Book Value is the _________ less the depreciable value. ✔Correct answer-Initial Cost
Depreciable Value is the purchase price less the _______________. ✔Correct answer-Salvage
Value
The _________________ of depreciation claims a constant amount on taxes each year. ✔Correct
answer-Straight Line Method
___________ is an artificial expense of an estimated loss that can offset income taxes over a period
of years. ✔Correct answer-Depreciation
Equipment depreciation is a/an ___________. ✔Correct answer-Ownership Cost
Equipment maintenance and repair is a/an ___________. ✔Correct answer-Operating Cost
Equipment service is a/an ___________. ✔Correct answer-Operating Cost
Equipment storage is a/an ___________. ✔Correct answer-Ownership Cost
Fuel to run the equipment is a/an ___________. ✔Correct answer-Operating Cost
Interest paid to finance the cost of the equipment is a/an ___________. ✔Correct answer-
Ownership Cost
Operating costs tend to ________ over time ✔Correct answer-Increase
Ownership costs tend to ________ over time ✔Correct answer-Decrease
Replacing equipment tires are a/an ___________. ✔Correct answer-Operating Cost
Taxes paid on the purchase of a piece of equipment are a/an ___________. ✔Correct answer-
Ownership Cost
The equipment operator is a/an ___________. ✔Correct answer-Operating Cost
