Answer:
1. D
2. B
3. A
4. False
5. True
6. A
7. A
Explanation:
1. Smart companies insure their asset to mitigate the effect of depreciation over its useful life. At the end it its useful life, the insurance policy makes the acquisition of new assets easier.
2. The balance sheet has 3 basic sections; assets, liabilities and equity. Hence the correct answer is depreciation.
3. A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.
4. purchase orders generally include the name of the company purchasing the goods or services, date, the description and quantity of the goods or services, price, a mailing address, payment information, invoice address, and a purchase order number. Hence, the invoice is gotten after purchase order have been submitted.
5. Before setting a price for your product, you have to know the costs of running .Most important is to add profit in your calculation of costs. Many manufacturers use cost-plus pricing.
6. Purchase order is usually drafted from a schedule of future orders. A schedule of future order is a list of prospective orders.
7. To invest is to allocate money in the expectation of some benefit in the future. In finance, the benefit from an investment is called a return.
